UK retail sales growth slowed in August as consumers reined in discretionary spending, with furniture, household appliances and other non-food categories among the weakest performers.
Total UK retail sales rose 0.7% year on year in the four weeks from 2 to 29 August, according to the latest British Retail Consortium (BRC)-KPMG Retail Sales Monitor.
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Growth was below the 1.6% average recorded over the previous 12 months and slowed from 1.3% in July, as the boost from unusually warm summer weather began to fade.
The BRC said higher temperatures had brought forward seasonal purchases from May onwards, leaving less demand later in the summer.
Non-food retail sales decline
Non-food sales fell 0.8% year on year in August, compared with growth of 1.8% in August 2025 and a 12-month average increase of 0.2%.
In-store non-food sales declined 1.2%, while online non-food sales fell 0.2%.
Harvir Dhillon, lead economist at the BRC, described August as a “disappointing month for retail sales”, saying rising household bills were encouraging consumers to rein in spending.
The impact was particularly evident in discretionary categories, with demand for larger purchases such as furniture and household appliances weakening.
Lower-cost categories proved more resilient, with health and beauty products continuing to attract consumer spending.
Food sales provide support
Food sales increased 2.6% year on year in August, providing some support to the wider retail market.
However, growth slowed from 4.7% in August 2025 and remained below the 3.2% average recorded over the previous 12 months.
Sarah Bradbury, chief executive of IGD, said high temperatures had helped keep shopper confidence relatively stable and supported grocery sales and volumes.
Food inflation falling to its lowest level for two years also helped ease some pressure on grocery spending.
However, Bradbury said consumers were increasingly focused on other pressures on household finances, including higher energy costs and uncertainty surrounding potential tax and benefit changes.
Online retail sales weaken
The slowdown extended to ecommerce, with online non-food sales falling 0.2% year on year in August.
Despite the decline, the online penetration rate increased slightly to 36.4%, from 36% in August 2025. This remained below the 12-month average of 38%.
The figures show that weaker non-food demand affected both store-based and online retail during the month.
Separate Barclays data showed overall UK card spending increased 2.1% year on year in August, its strongest growth in 13 months. Spending on eating and drinking also increased, indicating that consumers continued to spend in some leisure and experience-based categories even as retail demand softened.
Early summer spending weighs on August
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said the timing of seasonal spending played an important role in August’s performance.
“Summer spending started in May this year,” Ellett said, as warmer weather encouraged consumers to make seasonal purchases earlier than usual.
Food and drink, health and beauty continued to benefit from summer and holiday spending. However, Ellett said “most other categories couldn’t sustain another month of growth”.
Retailers are now shifting their focus towards back-to-school demand and the final quarter of the year, including Black Friday and Christmas trading.
The results also highlight the challenge of forecasting seasonal demand when weather conditions influence the timing of consumer purchases.
Retailers face cost pressures
The slowdown comes as UK retailers continue to face pressure from rising operating costs.
Dhillon said the sector was experiencing a “double whammy” of rising costs and weakening consumer demand.
The BRC is calling for government action on business rates and energy costs ahead of the Autumn Budget, arguing that higher costs could constrain retailers’ ability to invest in stores and local communities.
For retailers, the August figures point to a challenging transition into the final months of 2026. Food and some lower-cost discretionary categories remain relatively resilient, but weaker non-food sales underline the cautious approach consumers are taking towards larger purchases.
