British retail sales growth eased sharply in September as fuel shortages and wetter weather weighed on consumer confidence, data published by the British Retail Consortium and KPMG showed on Tuesday.
Retail sales grew only 0.6 per cent on a yearly basis in September after rising 3 per cent in August. At the same time, like-for-like sales fell 0.6 per cent annually.
An uncertain backdrop and slower growth means the fourth quarter is looks challenging as the economic recovery is dependent on strong retail sales during the festive season, Helen Dickinson, chief executive at BRC, said.
Fuel panic buying bought into sharp focus the impact supply chain bottlenecks and labor shortages can quickly have for consumers, Paul Martin, UK Head of Retail at KPMG, said.
The energy crisis is set to have further impact on inflation levels, putting pressure on household spending and retailers will be hoping for some good news from the Chancellor in his Budget to help them manage rising costs, Martin added.