According to the latest retail sales data from BRC-KPMG, UK total retail sales increased by 0.7% YoY in August, against growth of 3.1% in August 2025. Non-food sales decreased by -0.8% – by -1.2% in-store, and by -0.2% online. The online penetration rate increased to 36.4%, from 36.0% in August 2025.
Harvir Dhillon, lead economist at the British Retail Consortium (BRC), says: “August was a disappointing month for retail sales. Despite pockets of growth, particularly in some food categories, overall performance was below the average for the past year. With the cost of households bills rising, and set to rise further, many shoppers have clearly been tightening their belts. This was particularly true for discretionary spending, as big-ticket purchases like furniture and household appliances declined and consumers opted to instead treat themselves to smaller luxuries in health and beauty.”
Linda Ellett, UK head of consumer, retail and leisure, KPMG, adds: “Despite temperatures remaining high, summer season cooled off for retail sales in August.
“Summer spending started in May this year, as earlier higher temperatures pulled forward related purchases. And while the heat and holiday spending continued to drive food, drink, health and beauty sales into August, most other categories couldn’t sustain another month of growth. This resulted in a largely flat month for non-food goods overall.
“Retailer focus has now moved to back to school, with planning for the final quarter of the year and the lead-in to Black Friday month under way.”
