UK retail sales growth slows to 0.7% as households face rising bills
UK retail sales growth cooled in August as people tightened their belts in the face of rising household bills.
Figures released by the British Retail Consortium show that total retail sales edged up by 0.7% year-on-year, against an increase of 3.1% in the same month last year, as hot weather and holidays drove sales of food, drink, and health and beauty products.
This was below the 12-month average growth of 1.6%.
Subscribe to TRBFood sales increased by 2.6% year-on-year, against growth of 4.7% in August 2025, while non-food sales fell by 0.8% following an uplift of 1.8% last year.
Meanwhile, in-store non-food sales decreased by 1.2%, compared to growth of 1.3% a year earlier. Online non-food sales edged down by 0.2%, compared to a 2.7% increase in August 2025.
Harvir Dhillon, lead economist at the British Retail Consortium, said: “August was a disappointing month for retail sales. Despite pockets of growth, particularly in some food categories, overall performance was below the average for the past year.
“With the cost of households bills rising, and set to rise further, many shoppers have clearly been tightening their belts. This was particularly true for discretionary spending, as big-ticket purchases like furniture and household appliances declined and consumers opted to instead treat themselves to smaller luxuries in health and beauty.”
