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Retail sales growth slows despite new iPhone boost

Published 18/10/2024, 09:21
© Reuters Retail sales growth slows despite new iPhone boost
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Proactive Investors - Retail sales growth across the UK slowed in September, despite a surge in technology demand, aided by the release of Apple (NASDAQ:AAPL)'s new iPhone.

Sales ticked up by 0.3% over the month, against August’s 1.0% growth, according to the Office for National Statistics (ONS).

This came as computer and telecommunications retailers enjoyed a boost, in turn buoying non-food sales, but sales fell at food shops and petrol stations.

Sales across department, clothing and household goods stores increased by 1.9%, 0.3% and 0.5% respectively, while other non-food shops saw a jump of 5.5%.

Food store sales went into decline in the meantime though, falling by 1.9% on a 2.4% drop in supermarket volumes.

“Comments from retailers pointed to unseasonably poor weather and consumers continuing to cut back on luxury food items,” the ONS said.

This also coincided with a 0.1% fall in automotive fuel sales.

“After a challenging year for the retail sector, the industry will be pleased to see official figures revealing sustained growth in September,” Shopify director Deann Evans commented.

“While this data signals hope for retailers, our Holiday Retail Report data shows increased spending is unlikely to be frivolous.”

She noted the majority of Brits, or 83%, were still searching around for the best discounts, while 65% planned shops around sales to save money.

"The launch of the latest iPhone and other technology products were held up as being major drivers of the growth," interactive investor analyst Richard Hunter added.

"In the background, falling inflation and sufficient wage growth may have been enough to have underpinned the important consumer contribution to the economy."

Read more on Proactive Investors UK

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