Retailers prepare for ‘exceptionally tough’ golden quarter after Budget
The golden quarter is off to a slow start and things are only set to get tougher for retailers over Christmas, according to fresh data.
In-store sales grew by 1.7 per cent year on year in October, while total sales – both in-store and online – grew 4.1 per cent, according to BDO.
Whilst the figures initially suggest optimism, BDO said that comparatives from an exceptionally poor golden quarter in 2023 “mask the true performance” of the sector.
“This growth is based on the disastrous sales figures recorded in October 2023,” Sophie Michael, head of retail and wholesale at BDO said. “Sales volumes have not recovered to 2022 levels”.
“With this being the most important time of the year for the sector, if sales figures continue to follow this trajectory the industry is set for an exceptionally tough festive period,” Michael added.
A survey from the British Retail Consortium (BRC) at the end of September found that a third of consumers expected to spend less on clothes over the golden quarter, and around a quarter expected to spend less on electronics, beauty and entertainment.
Just one in six consumers think that the economy will improve over the next year while half think it will get worse, according to Which?
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