September retail figures offered a reassuring sign for investors that spending momentum remains intact, despite a complex macroeconomic backdrop. Year-on-year data pointed to a continued willingness among consumers to spend, especially in certain discretionary categories. Core retail, which strips out volatile components like fuel, autos and dining, recorded a 5.7 per cent annual rise. This included particularly robust showings in sporting goods, clothing, general merchandise and health-related items, where growth ranged between 4.4 and 8.8 per cent.
The pattern suggests consumers are adjusting their focus, sill spending, but with a clearer sense of value and priority. Even in areas where inflationary pressure has pushed prices higher, households have shown a notable capacity to absorb costs, particularly those in middle and upper income brackets.
Crucially, some retailers appear to be reading the shift early. By offering more targeted assortments, leaning into essentials or lifestyle‑driven categories, and maintaining pricing discipline, they are converting spend from volume to value. That matters in an environment where total retail revenues are holding steady, but unit volumes, particularly in general merchandise, have edged slightly lower.
Meanwhile, the data suggests a measured but still healthy appetite for personal care and lifestyle‑oriented purchases, reinforcing the view that spending is being reallocated rather than curtailed. Even categories like furniture, which have seen more modest growth, remain stable, apositive outcome given the exceptionally strong base from prior years.
itim Group plc (LON:ITIM) is a SaaS-based technology company that enables store-based retailers to optimise their businesses to improve financial performance and effectively compete with online competitors. Itim adds retail value by helping multi-channel retailers optimise their business and their stores to improve financial performance and compete more effectively with the “Amazons”.
