Retail sales increased in August as consumer confidence improves

Total retail sales in the UK increased by 4.1% in August as compared to 1% in the same month last year, according to the BRC-KPMG Retail Sales Monitor.

The growth was above the three-month average of 3.6% and in line with the 12-month average of 4.1%.

Food was in growth year on year, with sales increasing 8.2% on a total basis over the three months to August, accelerating above the 12-month average growth rate of 8%.

Non-food sales decreased 0.2% on a total basis in the same period, falling below the 12-month total average growth rate of 0.9%. Non-food was in growth year on year in August.

Total in-store non-food sales grew 1.3% over the three months to August. This is below the total 12-month average growth rate of 3.6%. 

Online non-food sales decreased by 1.7% in August compared with 6.1% in August 2022 – shallower than the three-month and 12-month declines of 3.1%. 

BRC chief executive Helen Dickinson said: “Retail sales in August improved, particularly on July’s poor performance. Sale of non-food products had their best month since February, particularly for health and beauty products as retailers continued to invest in new, exciting brands and customers splurged on self-care.

“The sales figures reflected the improvement in consumer confidence in August, and retailers hope this general upward trend will carry on. Not all areas benefited – clothing and footwear saw weaker growth as families held back spending on children’s uniforms and other back-to-school goods until the last minute.

“Easing inflation will certainly be welcomed by consumers, but as the rate of price rises falls, so will the extra spending needed by consumers. As a result, sales growth may fall in the coming months, even if volume growth does not.

“Furthermore, high interest rates and high winter energy bills will put pressure on many households to spend cautiously. Retailers are combatting this through a clear focus on great value for consumers, expanding budget ranges and finding ways to cut costs where possible.”