UK retail sales growth eases in August as consumers tighten their belts - BRC

(Sharecast News) - UK retail sales growth eased in August as summer spending cooled, with discretionary spending hit as consumers tightened their belts, industry data showed on Tuesday.

According to the latest BRC-KPMG retail sales monitor, total retail sales rose 0.7% year-on-year following 3.1% growth in August 2025. This was below the 12-month average growth of 1.6%.

Food sales were up 2.6% following 4.7% growth a year earlier, while non-food sales fell 0.8% year-on-year in August, versus 1.8% growth the year before.

In-store non-food sales declined by 1.2% last month following 1.3% growth in August 2025, while online non-food sales fell 0.2%, having grown 2.7% 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.

"As summer spending cools, all eyes turn to the Autumn Budget. Retailers are being hit by a double whammy of rising costs and slowing consumer demand. The new government has put high streets at the centre of their vision for better economic growth and the upcoming Budget is an opportunity to deliver on this commitment. Taking action on business rates and energy costs would help support retail investment in local communities while delivering value for consumers."