High streets are on course for an “exceptionally tough” Christmas period despite an uptick in sales last month, advisory firm BDO has warned.
Total store and non-store sales climbed by 4.1% over the course of October, following a drop of 1.7% a year earlier, BDO reported on Monday.
This reflected growth of 9.1% in non-store sales and a 1.7% increase across brick-and-mortar retailers.
BDO retail and wholesale head Sophie Michael highlighted that sales remained behind 2022 levels, despite the growth.
“With this being the most important time of the year for the sector, if sales figures continue to follow this trajectory the industry is set for an exceptionally tough festive period,” she said.
Poor weather prompted footfall to drop in all but the third week of October, according to BDO, hitting high streets but appearing to benefit retail parks.
Speculation over possible tax increases ahead of last week’s Budget did not appear to weigh on spending in the meantime though, the group added.
That said, “store sales still lag considerably below non-store sales, reinforcing the vulnerability of bricks-and-mortar retailers,” BDO warned.