UK Retail Sales Hit Three-Year High as Shoppers Rush for Gold and Tech

A surge in gold demand and the release of the iPhone 17 drive an unexpected rise in British retail sales, marking the strongest performance since 2022.

Retail sales in Great Britain soared to their highest point in three years last month, defying expectations and signaling a surprising burst of consumer activity in a still-uncertain economy. According to new data from the Office for National Statistics (ONS), retail sales volumes rose by 0.5% in September the fourth consecutive month of growth beating economists’ predictions of a 0.2% decline.

The rise was largely driven by strong performances in the technology and jewelry sectors. The launch of Apple’s highly anticipated iPhone 17 helped lift sales for computer and telecommunications retailers, while a growing wave of online demand for gold pushed internet jewelry sales higher. Analysts say the spike in gold sales reflects global uncertainty, with the precious metal enjoying its biggest rally since the 1970s as investors seek safer assets.

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Non-food stores, which include department stores, clothing, and household goods retailers, recorded the largest increase in sales, up 0.9% for the month. Overall, total sales volumes grew by 1.5% year-on-year in September, with August’s growth revised upward from 0.5% to 0.6%. Despite this recent momentum, retail sales remain 1.6% lower than levels recorded before the COVID-19 pandemic in February 2020.

 

The ONS figures come on the back of a strong summer for retailers, when warmer weather and major events like the Euro 2025 Women’s Football Tournament encouraged spending on clothing and seasonal goods. Over the three months from July to September, retail sales volumes rose by 0.9% compared to the previous quarter.

However, concerns persist about the accuracy and timeliness of the data. The release of July’s figures was delayed by two weeks, sparking criticism of the ONS’s data-processing systems. Treasury officials have reportedly expressed frustration over the reliability of recent statistics as they prepare for Chancellor Rachel Reeves’s upcoming November budget.

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Despite September’s robust retail performance, many experts remain cautious about the outlook for the remainder of the year. High inflation, rising interest rates, and growing concerns over employment and taxation are expected to weigh on consumer confidence.

“The improvement in sales was encouraging, but it’s unlikely to last in the face of persistent cost-of-living pressures,” said Nicholas Found, Head of Commercial Content at Retail Economics. “Shoppers are taking a cautious and deliberate approach to spending as household budgets remain stretched by essential living costs.”

He added that the timing of the government’s next fiscal announcement could further complicate matters for retailers. “The late autumn budget next month couldn’t come at a worse time for the sector, landing just as retailers gear up for peak trading over Christmas. Growing concerns around tax and borrowing costs are weighing on consumer spending intentions, prompting fiercer competition for limited discretionary spend.”

Industry analysts agree that the retail sector’s recent resilience may be tested as the festive season approaches. With Christmas typically serving as a make-or-break period for many retailers, businesses are expected to launch aggressive discounts and marketing campaigns to capture cautious consumers.

Meanwhile, economists suggest that the long-term strength of retail sales will depend heavily on inflation trends and wage growth in the coming months. If inflation continues to cool and household incomes improve, the retail sector could sustain some of its recent momentum.

For now, the data paints a mixed picture one of cautious optimism tempered by economic headwinds. The unexpected rise in retail activity is a welcome relief for businesses and policymakers alike, offering a glimpse of resilience amid broader uncertainty. But with households still tightening their belts and a pivotal budget looming, the true test for British retail may be yet to come.

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