Retail sales in the UK saw a significant slowdown in August, with growth reaching 0.7 per cent in the year to August. This figure, reported by the British Retail Consortium (BRC), is considerably lower than the 3.1 per cent growth observed in August 2025.
The August rate also fell below the 12-month average growth of 1.6 per cent. This decline was primarily driven by reduced spending on big-ticket items such as furniture and household appliances, as consumers reportedly cut back due to rising household bills.
While high temperatures earlier in the summer had boosted sales of items like fans and barbecues, this effect has now cooled. Linda Ellett, head of consumer at KPMG, noted that despite continued high temperatures, the summer season for retail sales cooled off in August.
Food sales increased by 2.6 per cent in August, which helped to support the overall sales figure, although this was lower than the 3.2 per cent 12-month average for food. In contrast, non-food sales experienced a year-on-year fall of 0.8 per cent in August.
Harvir Dhillon, lead economist at the BRC, described August as a "disappointing" end to the summer for retailers. Industry figures are now calling on Chancellor John Healey to address their tax burden, including employer national insurance contributions and business rates, ahead of next month's Budget.