Fashion sales have been hit the hardest by a disappointing month for UK retail, according to new figures.

Data from the British Retail Consortium (BRC) and KPMG shows that total retail sales in October increased by only 0.6 per cent compared to the 2.6 per cent growth recorded during the same period of 2023.

Sales were below the three-month average growth of 1.3 per cent and the 12-month growth of one per cent.

Non-food sales decreased by 0.1 per cent during the three months to October, with clothing seeing the largest drop across all categories. Beauty sales however remained strong over the period, with the number of sales increasing.

Overall, food sales were more successful with 2.9 per cent growth during the 12-week period. However, they still remained lower than the 7.9 per cent hike recorded in October last year.

The BRC said that the lower sales growth was in part driven by half term falling a week later this year, adding that it expects November sales to see more of a boost.

“Uncertainty during the run-up to the Budget, coupled with rising energy bills, also spooked some consumers,” said Helen Dickinson, chief executive, BRC. “Fashion sales took the biggest hit as the mild weather delayed winter purchases.

“Health and beauty sales remained buoyant, with beauty advent calendars flying off the shelves.”

The BRC hopes after a “painful Budget” for retailers that it will be less difficult for households in the immediate term and boost consumer appetite in time for Black Friday and the festive season.

The sector raised concerns last week about a more than £2.3 billion hike to employer National Insurance Contributions, a £367 million rise to the National Living Wage, and an increase of £140 million to business rates, which are all set to come into effect from April next year.

At the time, the BRC chief exec warned that the new costs risk increasing the prices customers pay at the till.

“With clarity now provided by the Budget and many households escaping paying increased tax from their wages, retailers will be hoping for an upturn in consumer confidence and spending,” said Linda Ellett, UK head of consumer, retail and leisure, KPMG. “Any positivity from retailers though will of course be dampened given the increased employment costs that they face.”

Deann Evans, EMEA managing director of Shopify, said that retailers should remain optimistic about "ending the year on a high" with its figures suggesting that planned spending this Black Friday and Cyber Monday will rise by 21 per cent compared to last year.

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