UK retail sales faced an unexpected setback in September, according to data released today. Retail sales volumes plummeted by an estimated 0.9% last month, following a slight 0.4% rise in August, painting a bleak picture for the nation’s retail sector. The decline was notably sharper than the anticipated 0.2% fall, as predicted by experts at Trading Economics.

Analysts have attributed this unexpected downturn to the unusually warm weather that gripped the country throughout September. Non-food store sales volumes experienced a significant dip of 1.9%, with non-store sales also down by 2.2%, offset only slightly by a meagre 0.2% rise in food store sales volumes.

Nicholas Hyett, Investment Manager at Wealth Club, expressed his concern, stating, “Exclude motor fuel and September’s retail volumes have come in a whole percentage point lower than August, and significantly below what economists had been expecting.”

Online retailers bore the brunt of the decline, intensifying the challenges faced by brick-and-mortar stores on the high street. The unusual weather patterns disrupted consumer spending habits, leaving retailers grappling with reduced footfall and sales.

Despite the grim scenario, there is a silver lining for some sectors. Food-store retailers managed to weather the storm relatively well, experiencing a stronger performance in comparison to other segments. Hyett noted, “Consumer staples are usually one of the most defensive areas of the stock market, and while branded products have been struggling a bit recently, the supermarkets themselves seem to be performing well.”

Additionally, the data revealed a glimmer of hope for the Bank of England, which recently implemented higher interest rates. With weak retail sales reflecting a cautious consumer approach, the central bank might find room to delay further rate hikes, providing a buffer against economic uncertainties.