Bira calls for continued support as retail shows signs of recovery

Despite a reported fall in consumer sentiment, retail spending showed modest growth in September, marking the strongest year-on-year performance in six months. Seasonal demand and back-to-school shopping spurred a rise in footfall traffic, although consumers remain cautious, prioritising experiences like dining out and travel over retail purchases.

The monitors reveal a mixed pricing environment, with price deflation in non-food items such as furniture and fashion offset by rising inflation in fresh food. Despite a slight improvement in personal finances, many consumers continue to save rather than spend, reflecting a downgraded economic outlook.

Andrew Goodacre, CEO of Bira, said: "While it's encouraging to see a modest growth in retail sales and increased footfall, we must recognise the fragility of the current trading environment. The mixed pricing landscape and continued consumer caution underscore the challenges our independent retailers face daily.

"The slight uptick in sales and footfall is welcome news, but it's crucial to understand that many businesses are still operating on razor-thin margins. Any increase in operational costs, such as a rise in business rates, could tip the balance for many struggling independents.

"As we approach the Autumn Statement, we urge the Chancellor to recognise the vital role of independent retailers in our communities and economy. Extending the current business rates relief is not just desirable; it's essential for the survival and growth of our high streets.

"Independent retailers have shown remarkable resilience, but they need continued support to thrive. The government must create an environment that encourages investment and growth in our sector, rather than burdening it with additional costs."