Retailers call for Budget support as September sales hit seven-year low
Retailers call for Budget support as September sales hit seven-year low
- Total like-for-like sales fell -0.3%, marking the weakest September since 2019
- Non-store sales decline -1.1%, reflecting the poorest September performance outside the pandemic period
- Retailers call for Government action ahead of Autumn Budget and crucial Golden Quarter
As we approach Chancellor John Healey’s first Autumn Budget, new data from accountancy and business advisory firm BDO reveals the extent of the challenges facing Britain’s retail sector.
BDO’s High Street Sales Tracker reveals September was the weakest for total discretionary retail sales in seven years, excluding the pandemic period. Total like-for-like sales across the discretionary retail categories were down -0.3%, compared with growth of +3.1% in September 2025.
Online sales performed particularly poorly, falling -1.1% compared to growth of +3.1% last September, marking the weakest September ever recorded (excluding the pandemic).
Traditionally, September benefits from a seasonal boost by back-to-school spending and shoppers refreshing their wardrobes for autumn. However, neither trend provided the usual uplift this year, with total sales growth for the month remaining consistently below 2025 levels. The data reflects the mounting pressure on the consumer purse and discretionary spending as retailers head into the all-important Golden Quarter.
Sophie Michael, Head of Retail and Wholesale at BDO, commented: “These results are deeply concerning and come at the worst possible time for retailers. September should act as a springboard into the crucial final months of the year, but instead we’re seeing consumers rein in discretionary spending. The fact that even online sales have fallen shows just how difficult the trading environment is.
“Retailers are facing pressure on multiple fronts. Costs of employment, supply chain and energy continue to rise and many will be apprehensive about further business rate rises announced in the Budget.
“Households are facing another winter of greater financial strain as energy bills bite and look set to rise further. Extreme weather across the globe is also expected to place further pressure on food prices in the months ahead, inevitably taking a larger proportion of consumer spend.
“The retail sector is entering the most important trading period of the year from an exceptionally fragile position. Retailers desperately need consumers to loosen the purse strings this Christmas but are having to make difficult decisions on stock levels, staffing and investment without visibility of whether consumer demand will materialise. Recent CBI data reports that retailers are cutting order volumes at the fastest rate since its Distributive Trades Survey began in 1983.¹
“While businesses will need to continue to manage margins incredibly carefully, there is only so much they can absorb before passing costs onto the consumer.
“The Autumn Budget presents a critical opportunity for the Government to support this struggling sector. Retailers urgently need measures that ease the growing cost burden and give businesses the confidence to invest. Without meaningful support, there is a real risk that more retailers simply won’t be able to withstand the challenges ahead.”
ENDS
¹ Note to editors: CBI Distributive Trades Survey, September 2026. Retail sales volumes fell at a faster pace in the year to September, while online retail sales declined at their fastest rate in nearly three years. Retailers reported reducing order volumes at the fastest rate since the survey began in 1983.
Note to editors
BDO LLP operates in 19 offices across the UK and Ireland, employing 8,500 people. It has revenues of £1.1bn.
It provides Audit, Tax, Deals, and Consulting, Risk & Outsourcing (CR&O) services predominantly to the entrepreneurial, ambitious and growing mid-sized businesses that are driving growth in the UK and Ireland economies.
BDO LLP is the UK and Ireland member firm of the BDO Global network.
BDO Global
The BDO international network provides business advisory services in 169 countries and territories, with 95,000 people working out of 870 offices worldwide. It has revenues of US$11bn.
Contact
Tasha Elliott
07769 293627
Lawrence Gallagher
07876 390295