- UK Total retail sales increased by 3.1% year on year in August, against a growth of 1% in August 2024. This was above the 12-month average growth of 2%.
- Food sales increased by 4.7% year on year in August, against a growth of 3.9% in August 2024. This was above the 12-month average growth of 3.3%.
- Non-Food sales increased by 1.8% year on year in August, against a decline of 1.4% in August 2024. This was above the 12-month average growth of 1%.
- In-Store Non-Food sales increased by 1.3% year on year in August, against a decline of 2.8% in August 2024. This was above the 12-month average growth of 0.5%.
- Online Non-Food sales increased by 2.7% year on year in August, against a growth of 1.5% in August 2024. This was above the 12-month average growth of 2%.
- The online penetration rate (the proportion of Non-Food items bought online) increased to 35.8% in August from 35.3% in August 2024. This was below the 12-month average of 36.8%.
Helen Dickinson, Chief Executive of the British Retail Consortium, said:
“Sunny weather and an interest rate cut helped August round off a solid summer of sales. Computing performed well as parents readied children for the new academic year, and gaming continued to show strong sales. Furniture also did better for the second month in a row, following several months of falling sales. New school clothing and footwear did not sell as well as expected, as some families opted for second-hand purchases. Stronger growth in food and drink was largely down to rising prices, which rose over 4% in August, rather than increasing volumes.
“Despite a better summer, retailers approach the ‘golden quarter’ with caution. With the later-than-expected Budget falling just days before Black Friday, many are uneasy about how consumer confidence and spending could be impacted by tax rise speculation in the run-up to Christmas. Government needs to shore up both consumer and business confidence. An assurance that the business rates reforms will deliver a meaningful reduction for retail and hospitality would remove uncertainty, give businesses the confidence to invest in local communities and help limit the price rises which are worrying consumers.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said:
“The high summer temperatures continued throughout August, with retail sales also on the rise.
Non-food goods grew around 2%, with moderate growth in the housing market helping to continue the upturn in home related purchases.
“Sales of many home goods have been seeing monthly increases since the spike in property transactions ahead of the Stamp Duty changes in April. Home appliances, accessories, and DIY and garden goods all saw sales growth in August. New product launches also boosted mobile phone sales, with computing related purchases rising ahead of the new school year.
“Retailers will be reflecting upon their summer performance and what has and hasn’t sold well, as they plan their stock levels for the final ‘golden’ quarter of the year that includes Black Friday and Christmas.”
Food & Drink sector performance | Sarah Bradbury, CEO, IGD, said:
“As shoppers settle back into reality after the hottest summer on record, food price inflation rose sharply in line with IGD’s forecast, reaching 4.9% in July, driven by staples like beef, chocolate, and coffee. Shopper confidence fell for the third consecutive month to -1, with many expecting food prices to climb even further. The emotional weight of rising energy bills and fears of tax hikes in the Autumn Budget are adding to the strain, especially as unemployment ticks upward. Yet, there are glimmers of relief: interest rates have been cut again, and mortgage rates are easing, offering some financial respite. While volumes remain under pressure, financially resilient shoppers may remain more confident, even as they brace for a challenging winter.”
