Retail sales grew at their fastest rate since January, according to the latest figures from the British Retail Consortium.
The trade body reported that the total value of sales was 2.4 per cent higher in October this year than in 2015. Online purchases rose 11.1 per cent while in-store sales fell 1.5 per cent.
The increase in the value sold comes despite falling prices – an index compiled by the BRC found that shop prices fell 1.7 per cent in the month because of fierce competition between supermarkets.
Helen Dickinson, chief executive of the BRC, said: “Despite the inflationary pressure that’s gradually building in the supply chain, retailers are currently effectively managing the additional cost burdens and continue to entice their customers.”
The retail sales figures are the latest in a series of stronger than expected figures following the EU referendum. Last week, a survey of purchasing managers in the services industry found the sector was also growing at its fastest rate since January.
The fastest growing subsector was “jewellery and watches” for the second month in a row, indicating that foreign buyers may be taking advantage of bargains thanks to the cheaper pound, said Paul Martin, UK head of retail at KPMG.
However, the fall of the pound following the referendum is likely to mean higher prices for shoppers in the coming months with crisps brand Walkers and frozen foodmaker Birdseye both discussing whether to charge supermarkets more.
Online sales made up 22.2 per cent of all non-food sales. October was the tenth consecutive month that they made up more than a fifth of all retail sales in the UK, according to the BRC.
