The Retail Sales Statistics for October 2016 showed both an increase in quantity bought and spend compared to September 2016.
The key findings from the Retail Statistics showed:
· In October 2016, the quantity of goods bought (volume) in the retail industry was estimated to have increased by 7.4% compared with October 2015; all store types showed growth with the largest contribution coming from non-store retailing. This is the highest rate of growth since April 2002.
· Compared with September 2016, the quantity bought was estimated to have increased by 1.9%; there were increases in all store types, except department stores. The largest contribution to growth came from textiles, clothing and footwear stores.
· The underlying pattern in the retail industry continues to show strong growth with the 3 month on 3 month movement in the quantity bought increasing by 1.9%; this is the 34th consecutive period of 3 month on 3 month growth.
· The amount spent (value) in the retail industry increased by 6.6% compared with October 2015 and increased by 2.1% compared with September 2016.
· The amount spent online increased by 26.8% compared with October 2015 and by 1.3% compared with September 2016.
Despite inflation fears linked to currency weakening and the increase in the cost of goods leaving the factory gate, quantity and value of sales both increased on September 2016. The Unilever debate during October, which saw a 10-12% price increase on products such as Marmite, could have added a little spread toward the increased sales figures, according to Phil Mullis, head of retail and wholesale and partner at Wilkins Kennedy.
“Continued competition from food stores kept price inflation at bay but fuel increases have offset most bottom line savings,” Phil comments. “Despite this, it has not deterred shoppers from stocking up on winter warmers and good food – as all sectors have reported an increase in quantity bought and amount spent.
“However, we cannot ignore that the Unilever price rises will go a little way to contribute to the increased spend – particularly in the grocery sector. Halloween too could have played a part in this. Even though the retail sales don’t account for the actual day of Halloween itself, the chances are the sales would have already landed – adding extra candy to the good all-round sales.
“With the golden quarter well underway, it will be interesting to see how price increases will affect the pre-Christmas retail sales – not much as it presently stands!”
