UK Retail Sales Growth Picks Up in September

UK retail sales rose by 1.0% year-on-year on a like-for-like basis in September 2026, exceeding forecasts for a 0.7% gain and accelerating from 0.5% in the previous month. Total retail sales growth also picked up to 1.3% from 0.7%, but remained below the 12-month average of 1.5%. Food sales increased by 2.5%, while non-food sales edged up by 0.3%. Health and beauty products recorded their strongest growth of the year, while clothing and footwear sales weakened due to unseasonably warm weather. Separately, Barclays' measure of consumer spending rose 2.0% year-on-year, slowing from 2.1% in August. Essential spending climbed 2.5%, driven by a 17.3% jump in fuel spending as diesel prices reached record highs, while non-essential spending increased 1.8%. Household financial confidence rose to a seven-month high of 67%, although 68% remained concerned about the upcoming budget's impact on their finances and 30% were cutting back on non-essential spending.

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.