FX.co ★ UK Retail Sales Growth Slows to 5-Month Low

UK retail sales experienced a year-on-year increase of 1.5% on a like-for-like basis in October 2025. This marks a slowdown from the 2% growth observed in September, representing the weakest pace in five months. The deceleration is attributed to consumers delaying purchases in anticipation of Black Friday and potential tax adjustments in the upcoming budget. Growth in food sales also tapered to 3.5%, down from 4.3%, as households began conserving funds for the holiday season. Meanwhile, non-food sales saw a marginal increase of just 0.1%, impacted by unseasonably mild weather and the expectation of Black Friday sales on November 28. Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), highlighted that retailers are counting on Black Friday to provide a significant boost. She cautioned that potential fiscal policy changes might further weaken the already delicate consumer sentiment. Dickinson also observed that many consumers are holding off on purchasing toys, electronics, and clothing until the arrival of special deals and cooler weather, though categories like furniture and homeware have shown better performance as individuals prepare for holiday gatherings.