Retail sales rise 3.1% in August due to warmer weather

UK retail sales grew 3.1% in August compared with the same month last year, marking a stronger end to the summer thanks to warmer weather, according to the British Retail Consortium (BRC).

The figures, covering the four weeks from 3 to 30 August, were above the 12-month average growth of 2%. Food sales increased by 4.7% year on year, while non-food sales rose 1.8% after falling 1.4% in August 2024.

In-store non-food purchases grew 1.3%, reversing a decline in the same period last year, while online non-food sales increased 2.7%. Online penetration – the share of non-food bought via the internet – edged up to 35.8%, though remained below the annual average of 36.8%.

The BRC has attributed this overall rise to warmer weather and the recent cut in interest rates, with computing and gaming performing strongly as families prepared for the new academic year. Furniture sales also recovered after months of decline.

However, the trade body noted weaker demand for school clothing and footwear, as some households turned to second-hand items. 

Despite the summer uptick, retailers remain cautious heading into the “golden quarter” of trading between October and Christmas. 

Helena Dickinson, chief executive of the BRC, said: “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.”

Linda Ellett, UK head of consumer, retail and leisure at KPMG, added: “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.”