UK retail sales rise 3.1% in August, outpacing annual average: BRC

In-store non-food sales increased by 1.3 per cent year on year in August, against a decline of 2.8 per cent in August 2024. This was above the 12-month average growth of 0.5 per cent. Online non-food sales increased by 2.7 per cent YoY in August, against a growth of 1.5 per cent in August 2024. This was above the 12-month average growth of 2 per cent.

The online penetration rate (the proportion of non-food items bought online) increased to 35.8 per cent in August from 35.3 per cent in August 2024. This was below the 12-month average of 36.8 per cent, BRC said in a press release.

“Sunny weather and an interest rate cut helped August round off a solid summer of sales. New school clothing and footwear did not sell as well as expected, as some families opted for second-hand purchases,” said Helen Dickinson, chief executive of the BRC.

“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,” added Dickinson.

“The high summer temperatures continued throughout August, with retail sales also on the rise. Non-food goods grew around 2 per cent,” said Linda Ellett, UK head of consumer, retail and leisure, KPMG. “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.”

ALCHEMPro News Desk (SG)