Indian summer failed to help shops as sales slid 0.9% in September with Brits cutting back on spending amid cost-of-living crisis

The Indian summer failed to help shops last month as Brits cut back on spending amid the cost-of-living crisis. 

Retail sales slid by 0.9 per cent in September, much worse than analysts had expected and more than wiping out the 0.4 per cent growth in volumes in August.

The Office for National Statistics said although hotter-than-expected weather boosted food purchases, it also put shoppers off buying autumn clothing.

The figures will do nothing to ease nerves about the stuttering economy, as interest rates and inflation pummel household finances.

There are concerns that retailers could come under massive pressure as the ‘golden quarter’ including Christmas begins. 

Clothing and department stores both saw notable declines in trade last month, as they also blamed continued pressure on consumers’ budgets due to the rising cost of living.

ONS chief economist Grant Fitzner said: ‘Retail sales fell notably in September, with retailers telling us that cost-of-living pressures are influencing consumers, particularly for sales of non-essential goods.

‘It was a poor month for clothing stores as the warm autumnal conditions reduced sales of colder weather gear.

‘However, September’s unseasonable warmth did help drive up food sales a little, and fuel sales rebounded from last month’s fall.’

Gizem Gunday, a partner at McKinsey & Co, said there were ‘signs that cautious customers are cutting back spending on discretionary items’ with -ticket items like furniture and jewellery down.

‘While the Rugby World Cup and Indian summer likely gave people cause to come together and celebrate with barbeques and picnics, the divergence between volume and value continues to increase as people cut back on consumption,’ she said.

‘Slowing rates of grocery price inflation are yet to translate into volume but will hopefully be a welcome relief to shoppers as some prices start to stabilise.’