Retail sales saw a rise in August as shoppers spent more on food over summer, but the autumn Budget could mean consumers will become more cautious with spending.

Total retail sales in the UK in August rose 1% year-on-year, compared with a growth of 4.1% for the same period in August 2023, according to the latest BRC-KPMG sales monitor.

This was higher than the three-month average growth of 0.4% and below the 12-month average growth of 1.2%.

Food sales saw the biggest increase in sales, growing 2.9% year-on-year over the three months to August, against a growth of 8.2% in August 2023.

Non-food sales declined 1.7% year-on-year over the three months to August, against a decrease of 0.2% in the same period last year.

In-store non-food sales fell 2.8% in the three months to August compared with a growth of 1.3% in August last year. Online non-food sales increased 1.5% year-on-year.

British Retail Consortium chief executive Helen Dickinson said: “Sales growth picked up in August, particularly for food as people came together to host barbecue and picnic gatherings for family and friends, and for summer clothing, health and beauty products as people prepared for trips away and summer social events. 

“While computing did well as university students made the most of summer discounting and readied themselves for the new academic year, other back-to-school-related sales were weaker than normal as some families opted for second-hand purchases.

“Following a difficult summer for much of retail, and the possible weakening of consumer spending as energy bills rise come October, many will be waiting for the Chancellor’s Autumn Budget before finalising their investment strategies.

“Labour’s first Budget is a golden opportunity to make good on their manifesto commitment and fix the broken business rates system which is holding back investment in people, places, technology and limiting growth. Decisive action will benefit working people across the country.”

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