UK total retail sales increased by 1.0% year-on-year, down from 4.1% growth in August 2023. This growth was above the 3-month average of 0.4% but below the 12-month average of 1.2%.
Non-Food sales decreased by 1.7% year-on-year over the three-month period, a sharper decline compared to 0.2% in August 2023 and above the 12-month average decline of 2.0%. August saw a year-on-year decline in non-food sales.
In-store Non-Food sales dropped by 2.8% year-on-year, compared to a 1.3% growth in August 2023 and below the 12-month average decline of 2.1%.
Online Non-Food sales increased by 1.5% year-on-year in August, surpassing the average decline of 1.7% in August 2023. This was above the 3-month average increase of 0.3% and the 12-month average decline of 1.8%. The online penetration rate for Non-Food items rose to 34.7%, up from 34.1% in August 2023 but below the 12-month average of 36.3%.
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Helen Dickinson OBE, Chief Executive of the British Retail Consortium, noted that sales growth in August was driven by increased food sales for social gatherings and summer clothing. She highlighted concerns over future consumer spending due to rising energy bills and the upcoming Autumn Budget, urging for reform in the business rates system.
Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, observed that despite a slight uptick in consumer confidence, overall spending remained subdued. She mentioned a boost in sales for sports, travel equipment, and online DIY and gardening items. Retailers should focus on value and experience as consumer confidence gradually improves.
Sarah Bradbury, CEO of IGD, reported positive trends in grocery sales and volumes in August compared to the previous year, with an expectation of increased shopper confidence following October's Budget announcement.
More information:
BRC
www.brc.org.uk