UK retail sales recorded a strong August, capping off a solid summer for the sector, according to new figures from the British Retail Consortium (BRC) and KPMG.
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Total retail sales grew 3.1% year on year, outperforming the 12-month average of 2%. Food sales rose 4.7%, above the yearly average of 3.3%, while non-food sales increased 1.8%, rebounding from a 1.4% decline in August 2024. Online non-food sales rose 2.7%, lifting the online penetration rate to 35.8%.
Helen Dickinson, Chief Executive of the BRC, 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."
Looking ahead, Dickinson warned of uncertainty:
"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 at KPMG, added:
"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."
More information:
BRC
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www.brc.org.uk
