UK total retail sales increased by +3.1% YoY in August, against a growth of +1% in August 2024, according to the latest BRC-KPMG Retail Sales Monitor, which also points to a recovery in furniture sales.
Non-food sales increased by +1.8% YoY against a decline of -1.4% in August 2024. In-store non-food sales increased by +1.3% against a decline of -2.8% in August 2024, while online non-food sales increased by +2.7% against a growth of +1.5% in August 2024. The online penetration rate (the proportion of non-food items bought online) increased to 35.8% in August from 35.3% in August 2024.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), says: “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 and leisure, KPMG, adds: “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.”
