UK retail sales slow in August

UK retail sales slowed in August as total sales increased by 1.0% compared with  an increase of 3% in August 2021, above the 3-month average of 0.7% but below the 12 month average growth of 2.5%, according to data from the British Retail Consortium (BRC) and KPMG retail monitor.  

From 31 July to 27 August, over the three months to August, food sales increased 3.8% on a total basis and 3.3% on a like-for-like basis. This is above the 12 month total average growth of 0.8%. 

The data showed that over the three-months to August, non-food retail sales decreased by 2.0% on a total basis and 2.6% on a like-for-like basis, below the 12 month total average growth of 4.0%. For the month of August, non-Food was in decline year-on-year.

In-store sales of non-food items increased 1.4% on a total basis over the three months to August, and 0.3% on a like-for-like basis from August 2021, below the 12 month growth of 33.7%.

However, online non-food sales decreased by 6.1% in August, against a decline of 4.6% in August 2021. This is above the three month average decline of 6.6% and the 12 month decline of 14.2%.

Helen Dickinson OBE, CEO of the BRC, said: “Retail sales growth slowed in August compared to the previous month as consumers reined in spending amidst the spiralling cost-of-living. While inflation in retail prices is lower than general inflation at over 10%, this still represents a significant drop in sales volumes. 

“For the first time in recent months, clothing sales were sluggish as summer events ended, and parents held back on back-to-school spending. White goods and homeware remained hardest hit, but products such as air fryers and knitwear did get a boost as thrifty consumers prepare for soaring energy bills.”

 She added: “With some predictions of inflation reaching 20% in the new year, households and retailers are preparing for a particularly tough time ahead. As retailers face into their own rising costs from all directions, they continue to do all they can to protect customers from price rises.”

Don Williams, retail partner at KPMG, added: “The warm weather combined with rising prices, saw August sales growth rise by 1% year on year, although volumes will have been challenged.

“The heatwave saw strong growth for health items such as suntan lotion, whilst food and drink sales for summer barbeques grew by 5% year on year and home accessories also saw growth for the first time in months.  Online sales dipped by over 6% in August, however the locked in step up of on line penetration remains.”