Covering the four weeks 03 - 30 August 2025
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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%.
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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%.
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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%.
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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%.
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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%.
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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.”
