BUSINESS LIVE: Retail sales fall 0.3%; Nationwide member benefits hit record; Marston’s appoints new CEO

Qinetiq boss Steve Wadey has hailed the success of the UK defence sector as his firm became the latest to report surging orders amid growing geopolitical tensions.

It said uncertainty caused by the war in Ukraine, tensions with China and the conflict in Gaza had boosted defence and security budgets, helping the likes of Qinetiq, which specialises in high-tech areas such as robotics, laser and cyber, as well as more traditional UK defence firms such as BAE Systems and Babcock.

The founders of Hotel Chocolat are set to share a £280million windfall after agreeing to sell it to Mars.

In the latest takeover of a UK-listed firm by overseas suitors, the board of Hotel Chocolat backed a 375p-a-share bid from the US confectionery giant, valuing it at £534million.

(PA) – The UK’s retailers saw their sales levels unexpectedly drop last month, pushing them to the lowest since February 2021 when there were still Covid-19 restrictions in place, official data suggested.

The Office for National Statistics (ONS) said that retail sales volumes dipped 0.3% in October. The statisticians also revised September’s fall from 0.9% to 1.1%.

Analysts had expected a rise of 0.4% in October, according to a consensus estimate supplied by Pantheon Macroeconomics.

Food shops said their sales had fallen 0.3% during the month, a worse result than September, but non-food stores saw a decline of 0.2% in October, after sales dropped 2.1% the month before.

Retailers blamed the cost of living, reduced footfall and wet weather in the second half of October.

“Retail sales fell again in October to their lowest level since February 2021 when widespread lockdown restrictions were in place,” said Heather Bovill, deputy director for surveys and economic indicators at the ONS.

“After rebounding in September, fuel sales dipped with increasing prices discouraging customers, while food sales also dropped as consumers prioritised essential goods.”

Jacqui Baker, head of retail at RSM UK, comments on the latest ONS monthly retail sales figures:

Retailers had high hopes for the start of this year’s Golden Quarter, but sadly wet weather and the cost of living dampened sales this month, as cash strapped consumers held out from splurging on clothing and bigger ticket items to take advantage of Black Friday and Cyber Monday deals in November.

The sharp drop in consumer confidence in October shows that the cost of living pressure remains as high mortgages and rents, interest rates and inflation continue to squeeze household budgets. Although there are subtle signs of these pressures easing, consumers remain cautious and are reluctant to spend unless necessary.

Despite a subdued start to the Christmas trading period there are reasons to be hopeful. With Black Friday and Cyber Monday deals; energy prices falling; and thousands of households benefiting from the Autumn cost of living payment, consumers should feel more confident to spend in the run up to Christmas.