Brits shop like Liz Truss never happened

18th October 2024

Sales volumes - the amount we all bought – rose by 0.3% in September. The home delivery expert Parcelhero says volumes finally returned to July 2022 levels, before Liz Truss' disastrous September mini-budget hit household spending.

The latest Office For National Statistics (ONS) retail sales bulletin reveals that the amount shoppers bought continued to rise in September, up 0.3% following a 1% rise in August.

The home delivery expert Parcelhero says retail sales volumes have finally returned to their July 2022 levels, shortly before then PM Liz Truss and her Chancellor, Kwasi Kwarteng, delivered their infamous September ‘KamiKwasi’ mini-budget.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘It’s encouraging to see that September’s sales volumes were at their highest index levels since July 2022. It looks like Brits are now recovering from the impact of 2022’s galloping inflation and soaring household energy bills.

‘The biggest climb was in the ONS’ "other non-food store" category, which includes consumer electronics. The ONS reports that sales of products such as computers and telecommunications equipment soared by 5.5% over August. Such items are generally considered non-essential spending, so it’s heartening that consumers may be feeling a little more confident about their finances.

‘We’ve seen from other recent figures that inflation has started to fall. That is reflected in the fact that, even though Brits purchased 0.3% more items in September than in August, our total spend – both in-store and online – rose by only 0.1%. That’s a direct contrast with the period following the disastrous September 2022 mini-budget, when the amount we spent spiralled but the amount we actually bought decreased, showing the true impact of inflation.

‘Brits spent 1.3% more online in September than in August and, again, the sales category that includes computers and mobiles saw the biggest rise. Online “other non-food store” spending soared by a whopping 10.5% as Brits finally splashed the cash on electronic goodies again. Tellingly, the amount shoppers spent online was up 6.7% YOY, compared to September 2023, reflecting increasing consumer confidence.

‘Overall, online sales grabbed 27.7% of the entire retail market in September. The figures have been hovering at around 26-27% for many months now, indicating that the post-Covid decline in online sales has now stabilised.

‘It's those stores with a combined High Street and online offering that are most protected against unexpected events, such as rogue budgets and the vagaries of the British weather. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf