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2d ago

UK Retail Sales Rise 3.1% in August on Food Price Gains and Back‑to‑School Tech

Retailers now eye the late-November Budget warily as confidence-sensitive holiday trading approaches.

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

  • BRC-KPMG reported total sales up 3.1% year on year in August, the fastest pace this year outside the Easter‑distorted April reading.
  • Food sales rose 4.7%, which the BRC said mainly reflected higher prices rather than stronger volumes.
  • Non-food grew 1.8%, led by computing, mobile phones, home appliances and DIY, while demand for new school clothing lagged as some families bought second‑hand.
  • Barclays said overall card spending growth slowed to 0.5% year on year, with essentials down but discretionary categories up 2%.
  • The Bank of England’s cut to 4% in a narrow 5–4 vote helped sentiment, yet inflation at 3.8% in July and tax speculation keep retailers cautious ahead of Black Friday and Christmas.