Hot and sunny weather combined with an interest rate cut helped build a “solid summer of sales” for retailers in August, according to the latest data.
Total UK retail sales jumped 3.1% year on year in August, compared to a 1% jump for the same period in 2024, according to the latest BRC-KPMG retail sales monitor.
Food sales led the charge, up 4.7% year on year in the period – well ahead of the 3.3% growth for the 12-month average.
Non-food sales also saw a bounce, thanks to the hot weather. They were up 1.8% for the period, compared to a 1.4% dip in August 2024. In-store non-food sales also inched up 1.3% compared to a 2.8% decline a year ago.
Online non-food sales were also up, 2.7% year on year, compared to a 1.5% jump in 2024.
The online penetration rate in August jumped to 35.8%, which was below the 12-month average of 36.8%.
British Retail Consortium chief executive Helen Dickinson said that while summer 2025 was a good period for retail, the sector was looking ahead to the run-up to Christmas with trepidation.
“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,” she said.
“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. The 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.”
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