British retailers enjoyed a stronger-than-expected boost in August, with sales rising 0.5% compared to July, according to the Office for National Statistics (ONS). Economists had predicted a
smaller increase of 0.3%.
Sunny weather gave stores a lift, particularly clothing and department shops, while food retailers like bakers and butchers also saw more customers through their doors. However, July’s growth was revised slightly down—from 0.6% to 0.5%.
On a year-on-year basis, sales volumes were up 0.7%. But when looking at the broader three-month trend, sales actually slipped 0.1%—a smaller decline than the 0.6% drop recorded in the previous three-month period.
Hannah Finselbach, a senior ONS statistician, noted that non-food retailers such as antiques dealers, auction houses, and tech stores had a tough stretch. Fuel sales also dipped, though this was partly offset by gains from online and clothing shops.
Despite the August bump, shoppers remain under pressure. Inflation stood at 3.8% last month, with food prices still climbing faster than average.
Adding to the uncertainty, consumer confidence fell in September, according to research firm GfK. Many households are also bracing for potential tax rises in Finance Minister Rachel Reeves’ upcoming November budget—a move retailers fear could dent spending further.
Major chains have already voiced concern. Primark owner Associated British Foods and discount grocer Aldi have both pointed to worries about tax speculation weighing on demand. Fashion retailer Next warned this week that it expects sales growth to slow in the second half of the year, citing both consumer caution and a weaker jobs market. Photo by Philafrenzy, Wikimedia commons.