UK retailers cap off strong summer as August sales rise
By Benjamin Chiou
Date: Tuesday 09 Sep 2025
(Sharecast News) - UK retail sales grew at a solid pace in August, according to the British Retail Consortium, capping off a strong summer for retailers with activity receiving a boost from warm weather and an interest-rate cut.
Total retail sales increased by 3.1% compared with last year, the BRC-KPMG retail sales monitor showed on Tuesday.
That followed a 2.5% annual increase in July and a 3.1% gain in June, and was comfortably ahead of the 12-month average growth rate of 2%.
Food sales were up 4.7% on last year, accelerating from the 3.9% gain in July, though this was largely down to inflation, with food prices up 4% in August. Non-food sales growth also picked up to 1.8% from 1.4%, the BRC said.
Meanwhile, in-store non-food sales were 1.3% higher, while online non-food sales gained 2.7%.
"Sunny weather and an interest rate cut helped August round off a solid summer of sales," said BRC chief executive Helen Dickinson.
"Computing performed well as parents readied children for the new academic year, and gaming continued to show strong sales. Furniture also did better for the second month in a row, following several months of falling sales. New school clothing and footwear did not sell as well as expected, as some families opted for second-hand purchases."
Despite the strong summer, Dickinson said retailers were cautious heading into the key autumn-winter selling period, calling on the government to help improve consumer and business confidence.
"With the later-than-expected Budget falling just days before Black Friday, many are uneasy about how consumer confidence and spending could be impacted by tax rise speculation in the run-up to Christmas," she said.
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