UK Retail Sales Growth Slows to Nearly 2-Year Low

UK retail sales rose 0.5% year-on-year on a like-for-like basis in August 2026, slowing from a 1% increase in July and marking the weakest growth since October 2024. Total retail sales growth also eased to a four-month low of 0.7% from 1.3% in the previous month. Food sales increased 2.6%, down from 3.8% in July, while non-food sales fell 0.8% after declining 0.7% a month earlier. The British Retail Consortium said record-high temperatures earlier in the summer had brought forward seasonal purchases, particularly for food, drink, health and beauty products, leaving most other categories struggling to sustain momentum in August. Shoppers also cut back on big-ticket purchases such as furniture and household appliances in favor of cheaper health and beauty products. Separately, Barclays' broader measure of consumer spending rose 2.1% year-on-year in August, slightly faster than July's 2% increase, while its consumer confidence measure fell to 26% from a 21-month high of 30% in July.

UK retail sales rose by 1% year-on-year on a like-for-like basis in July 2026, falling short of market expectations for a 1.5% gain and slowing from a 1.7% increase in the previous month. The latest figure also marked the softest growth since February, as consumers remained wary of big outlays despite support from England's run to the World Cup semi-finals and a prolonged heatwave. Food sales rose 3.8% while non-food sales declined 0.7%. Clothing sales benefited from hot weather, although footwear sales fell. Barclays' broader measure of consumer spending rose 2%, slightly faster than June's 1.9% increase, with essential spending up 2.9% and non-essential spending increasing 1.6%. Pub transactions jumped 10% during the month, supported by World Cup matches, while travel spending shifted toward domestic staycations as airline spending fell 6%. Barclays' consumer confidence measure also reached its most optimistic level about the UK economy in 21 months.

UK retail sales rose by 1.7% year-on-year on a like-for-like basis in June 2026, falling short of market expectations for a 2.9% gain, slowing from a 3.4% increase in May and marking the softest growth since February. Despite the slowdown, spending was supported by the men's FIFA World Cup and a prolonged heatwave, which boosted demand for clothing, electric fans, air-conditioning units, food and beverages, while pubs also benefited from England's matchdays. Non-food sales increased 1.2%, double their 12-month average, helped by the strongest online sales penetration of 2026 as soaring temperatures discouraged shoppers from visiting physical stores. Barclays' broader measure of consumer spending also rose 1.9%, with essential spending up 2.2%, the strongest increase in 14 months, while travel spending stabilized after earlier declines. Still, the British Retail Consortium warned that political uncertainty and the impact of the Iran conflict could weigh on spending in the months ahead.