October delivers strongest retail sales growth since January 2025
October delivers strongest retail sales growth since January 2025
- Like-for-like retail sales across discretionary categories increased in October by 4.6% compared with the same month last year.
- Growth was driven by online sales, while in-store sales growth remained below the rate of inflation
- These results mark only the third month in 2026 in which retail sales growth has outpaced inflation growth, indicating a welcome increase in sales volumes.
Total like-for-like sales in discretionary categories (fashion, lifestyle and homewares) grew by +4.6% in October compared to the same month last year, according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO.
This result represents the strongest performance since January 2025 and provides a welcome boost as retailers end the first month of the crucial Christmas trading period.
However, the data shows a clear divide between online sales, which performed very strongly, up 10.1%, and high street sales, up just +2.2% compared to the same month last year, below the rate of inflation.
The fashion sector reflected this trend, with in-store sales growing just +2.1% while online sales were up +9.0% growth. This was likely driven by consumers purchasing winter clothing after temperatures dropped in October following several months of warm weather.
Sophie Michael, Head of Retail and Wholesale at BDO, commented: “Retailers will welcome this result after what has been an extremely challenging year to date. However, they should be cautious about reading too much into a single month’s performance. Colder weather is likely to have prompted shoppers to update their winter wardrobes while promotions activity is likely to have stimulated spending.
“While sales growth has finally moved ahead of inflation, underlying trading conditions remain difficult. Consumer confidence remains fragile and many retailers are working hard to convert the shopper’s interest into spending.
“Many were hoping that the Chancellor’s Budget would provide measures to stimulate growth and support consumer spending. While the decision to freeze business rates for two years offers some reassurance to those who won’t benefit from the full rates relief, there was little to suggest a significant boost to household spending power will appear in the months ahead.
“The reality is that consumers remain cautious and highly price-sensitive. Retailers are having to work harder than ever to win every pound of discretionary spend. With Christmas now fast approaching, the challenge for the sector will be turning October’s encouraging performance into sustained demand without sacrificing profitability through ever-deeper discounting”.
ENDS
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