Covering the 4 weeks from 2 29 August 2026
- UK Total retail sales increased by 0.7% year on year in
August, against growth of 3.1% in August 2025. This was below the
12-month average growth of 1.6%.
- Food sales increased by 2.6% year on year in August, against
growth of 4.7% in August 2025. This was below the 12-month
average growth of 3.2%.
- Non-Food sales decreased by 0.8% year on year in August,
against growth of 1.8% in August 2025. This was below the
12-month average growth of 0.2%.
- In-Store Non-Food sales decreased by 1.2% year on year in
August, against growth of 1.3% in August 2025. This was below the
12-month average decline of 0.4%.
- Online Non-Food sales decreased by 0.2% year on year in
August, against growth of 2.7% in August 2025. This was below the
12-month average growth of 1.3%.
- The online penetration rate (the proportion of Non-Food items
bought online) increased to 36.4% in August from 36.0% in August
2025. This was below the 12-month average of 38.0%.
Harvir Dhillon, Lead Economist at the British Retail
Consortium, said:
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.
As summer spending cools, all eyes turn to the Autumn Budget.
Retailers are being hit by a double whammy of rising costs and
slowing consumer demand. The new government has put high streets
at the centre of their vision for better economic growth and the
upcoming Budget is an opportunity to deliver on this commitment.
Taking action on business rates and energy costs would help
support retail investment in local communities while delivering
value for consumers.
Linda Ellett, UK Head of Consumer, Retail & Leisure,
KPMG, said:
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 underway.
Sarah Bradbury, CEO, IGD,
said:
High temperatures in August kept shopper confidence on an even
keel, with grocery sales and volumes both higher than last year.
The news that food inflation is at its lowest level for two years
meant that shopper concerns around rising food prices dipped a
little. However, reports of the upcoming increase in the energy
price cap and uncertainty in the geo-political environment
contributed to shoppers' focus beginning to shift to other
financial pressures, such as possible tax or benefit changes.
Ahead of the Autumn Budget, food and drink businesses should
expect shoppers to be sensitive to a range of topics that could
impact their finances and therefore, their ability and
willingness to spend more.
