Energy worries drive sales of blankets and air fryers

Concern over the rising cost of gas and electricity has driven consumers to stock up on blankets, warm clothing and energy-efficient appliances before winter sets in.

The latest survey by the British Retail Consortium (BRC) and consultancy KPMG found that while energy-saving appliances such as air dryers and air fryers have been selling well, households have cut back on items such as computers, TVs and furniture as the cost-of-living crunch continues to bite. The overall rise in retail sales, the value of which grew by 2.2% in September, “masks a much bigger fall in the volume of goods sold, once inflation is accounted for”, the BBC reported.

Helen Dickinson, chief executive of the BRC, warned that a difficult winter looms for both retailers and consumers.

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“Costs are increasing throughout retailers’ supply chain, the pound remains weak, interest rates are rising and a tight labour market is pushing up the cost of hiring,” she said. “All of this is making it harder for retailers to reduce prices and help struggling households.”

It comes as research firm Kantar estimated the average annual grocery bill across the UK is set to rise by £643 this year, or an extra £54 a month.

“Taking that at a basket level, that’s an extra £3.04 on top of the cost of the average shopping trip last year, which was £21.89,” Fraser McKevitt, head of retail and consumer insight at Kantar, said.

In another indication of how rising prices are changing the living habits of UK households, a report from Barclaycard found spending on takeaways and digital content had benefited from the arrival of colder weather, which has prompted people to spend more time at home.

“Consumers are taking a savvy approach to budgeting as they reduce spending on discretionary items and seek more value in their weekly shop, which is having a knock-on effect on retail and hospitality sectors,” said Esme Harwood, director at Barclaycard.

All this points to consumers “being more selective about their purchases”, said The Times. This could spell particular trouble for the already beleaguered retail and hospitality sectors ahead of the traditionally busy Christmas period.