Overview

• BRC/KPMG data show total sales up 3.1% year on year in August, rounding off a solid summer, with like-for-like growth the fastest this year outside April’s Easter boost.
• Food and drink spending rose about 4.7%, a gain the BRC said was driven mainly by higher prices rather than increased volumes.
• Non-food sales increased 1.8%, with computing, mobile phones, gaming, furniture, home appliances, and DIY and garden goods outperforming as some families cut back on new school clothing and footwear.
• Barclays reported consumer card spending growth slowed to 0.5% in August, essentials fell, discretionary categories rose 2%, and shopper confidence slipped to -1 as many expect further food price increases.
• Retailers are cautious heading into the golden quarter given the 26 November Budget and tax-rise speculation, even as the Bank of England’s recent rate cut to 4.0% offers some relief and economists flag the need for further easing.