{
  "id": 14068290,
  "title": "Retail sales ‘sluggish’ as shoppers feel cautious ahead of Budget",
  "url": "https://urgent.news/2026/10/12/retail-sales-sluggish-as-shoppers-feel-cautious-ahead-of-budget",
  "topic": "business",
  "section": "Business",
  "published": "2026-10-12T23:01:00.000Z",
  "source": {
    "name": "City AM",
    "slug": "city-am",
    "url": "https://www.cityam.com/retail-sales-sluggish-as-shoppers-feel-cautious-ahead-of-budget/"
  },
  "original_language": "en",
  "account": "British retail sales were lackluster last month as consumers grew more cautious in the lead-up to the Autumn Budget. Retail sales rose by 1.3% over the past year, compared to a 2.3% increase in September 2025, according to the British Retail Consortium and KPMG. High street firms are resisting price hikes but are unprepared for potential tax increases in the Budget. Food sales accounted for the majority of the sales increase, growing 2.5%, though it was still well below the 4.3% rise in September 2025 and the 3.1% average over the past year. Non-food sales remained stagnant, growing 0.3%, compared to the yearly average of 0.2%. Health and beauty sales experienced their strongest month of the year, with Pokemon's 30th anniversary products driving toy sales. Analysts suggested that prolonged summer temperatures may have delayed shoppers' transition to autumn and winter clothing. The Chancellor warned that higher retail taxes could jeopardize jobs. Linda Ellet, KPMG's head of consumer, retail, and leisure, noted that consumers are becoming \"increasingly selective\" due to concerns over rising inflation, driven partly by the Iran war. She stated that consumers are prioritizing certain categories while postponing purchases in other areas. With Black Friday approaching, some consumers may reconsider whether to make purchases now or wait for potentially lower prices later. Sarah Bradbury, CEO of retail insights firm IGD, said pre-Budget tax speculation is weighing on shoppers' minds, adding pressure to household finances and weakening spending. While Halloween may boost impulse grocery sales in the short term, food businesses will be closely watching the Budget to assess its impact on consumer spending power, business costs, and demand heading into 2027. Retailers have called on Chancellor John Healey to avoid a \"warehouse tax\" and instead exempt high street businesses from the highest business rates multiplier. Helen Dickinson, BRC CEO, warned that another rise in business rates would increase pressure on prices, stifle high-street investment, and put local jobs at risk. The upcoming Budget must support retail investment, employment, and growth, rather than making it more difficult.",
  "summary": "British retail sales showed “sluggish” growth last month as shoppers became increasingly cautious ahead of the Autumn Budget. Total sales at retailers increased by 1.3 per cent in the 12 months to September, compared to 2.3 per cent growth in September 2025, according to the British Retail Consortium (BRC) and Big Four giant KPMG. The [...]",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}