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yesterday

UK Retail Sales Rise 3.1% in August After Rate Cut and Warm Weather

Much of the gain reflects higher food prices rather than stronger volumes.

People and shoppers make their way over a crossing on Oxford Circus in London, Britain July 31, 2025. REUTERS/Jack Taylor/File Photo
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An increased demand for gardening goods helped to boost retail sales
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Overview

  • Total and like-for-like sales each rose 3.1% year on year, the fastest pace this year outside April’s Easter‑related spike, according to the BRC-KPMG monitor.
  • Food sales increased 4.7% year on year, with the BRC attributing the uplift largely to price inflation; the IGD reported food inflation at about 4.9% in July.
  • Non-food sales grew 1.8%, with stronger demand for furniture, home appliances, DIY and gardening goods, and computing and mobile phones, while school clothing and footwear underperformed as some families chose second‑hand.
  • Barclays reported overall consumer card spending growth slowed to 0.5% in August from 1.4% in July, with essentials down and discretionary categories up 2%.
  • Shopper confidence fell for a third month to -1, and retailers are wary of the 26 November Budget and tax speculation as they plan for the crucial pre‑Christmas trading period.