UK Retail Sales Unexpectedly Rise in August

UK retail sales volumes rose 0.5% month-on-month in August 2026, defying market expectations of a 0.2% fall and rebounding from a 0.5% decline in July. Non-store retailers rose 1.7%, partially recovering from July’s decline when earlier promotional activity in June pulled sales forward. Non-food store sales volumes rose 0.6%, with department stores recovering from stock availability issues and clothing retailers rebounding. Food store sales volumes also increased 0.3%, supported by higher supermarket spending. Meanwhile, fuel sales fell 1.3% as sharp price rises prompted consumers to change buying habits, including partially filling tanks. Over the three months, sales volumes grew 0.9%, supported by warm weather, strong non-store and food sales, and higher alcohol and beverage sales linked to promotions and the World Cup. Annually, retail sales volumes rose 2.4%, exceeding expectations for a 1.9% increase and accelerating from a 1.2% gain in July.

UK retail sales volumes fell 0.5% month-on-month in July 2026, in line with market expectations and following a downwardly revised 0.7% rise in June. This marked the first decline since April, as non-food stores and non-store retailers pulled back after early promotions brought demand forward into June. Non-food store sales volumes dropped 1.3%, led by weaker clothing and household goods sales. Clothing retailers cited lower footfall amid hot weather and fewer promotions. Household goods stores declined as the heatwave reduced demand, while department stores were affected by stock availability issues. Non-store retail sales fell after strong gains in May and June, boosted by promotions, sports merchandise and demand for outdoor products and fans. Partly offsetting these declines, food store sales rose 0.5%, supported by hot weather and the World Cup. On an annual basis, retail sales increased 1.6%, the smallest rise in three months, down from 3.8% in June.

UK retail sales volumes increased 1.0% month-on-month in June 2026, defying market expectations of a 0.3% fall, though easing from a 1.2% rise in May. Sales were boosted by hot weather and the World Cup, which temporarily offset persistent cost-of-living and inflation worries. Non-store retail sales went up on sales promotions and demand for sports merchandise, clothing, outdoor products, fans, and air conditioning. Clothing store sales rose 1.9%, the largest monthly increase since September 2025, also supported by promotional discounts and warmer weather. Within other non-food stores, art galleries also performed well, while retailers broadly cited stronger demand for seasonal goods. In addition, online sales increased 2.8%. On an annual basis, retail sales climbed 4.2%, the strongest growth since January, surpassing market forecasts of a 2.3% rise and following an upwardly revised 3.5% gain in May. Retail sales rose 0.6% in the second quarter compared with the previous quarter.