BRC Reports 1.3 Pct Drop In September UK Sales

After the British Retail Consortium (BRC) indicated the weakest growth in eCommerce and high street spending since the survey began in the mid-90s, merchants have called for the government to secure a deal for Brexit with the European Union. The trade body noted a 1.3 percent decline in September sales and an annual rise in activity of only 0.2 percent, which is the lowest since 1995, The Guardian reported.

The BRC’s Chief Executive Helen Dickinson said, per the report, “With the specter of no deal weighing increasingly on consumer purchasing decisions, it is no surprise that sales growth has once again fallen into the red. Many consumers held off from non-essential purchases, or shopped around for the bigger discounts, while the new autumn clothing ranges suffered from the warmer September weather.”

Merchants said the BRC’s monthly poll with KPMG indicated that shoppers were hesitant to spend their money at the time of increased economic and political uncertainty. According to The Guardian, official Office for National Statistics figures “have been less downbeat” than CBI and BRC surveys.

The BRC pointed out that the spending slowdown was clear in eCommerce and in stores. However, the organization noted that food sales have been faring better than spending on non-food items. The report also noted that KPMG’s U.K. Head of Retail Paul Martin forecasted a time of higher promotional activity to allow merchants to clear excess stock.

The news comes as the summer shopping season concluded with more of a whimper than a bang in Britain, per figures released at the time. The BRC noted at the time that same-store sales were down by 0.9 percent year over year in the four-week period from July 31 to Aug. 27, after a 1.1 percent growth reported in July.

Sales for all stores fell 0.3 percent, against a 0.1 percent rise in Aug. 2015, the worst performance the sector had notched since September of 2014.