Retail sales slow as heatwave boost cools
The heatwave boost fuelling summer sales cooled last month, as Brits cut back on retail spending to deal with rising bills. Retail sales grew by 0.7 per cent in the year to August, marking a significant slowdown compared to 3.1 per cent growth in August 2025, according to the British Retail Consortium (BRC). August’s rate [...]
The British Retail Consortium reported that retail sales in the UK slowed in August as the boost from the summer heatwave waned. Brits curtailed their spending due to rising bills, leading to a 0.7 percent year-on-year growth in retail sales. This marked a sharp contrast to the 3.1 percent growth in August 2025. August's figure fell short of the 12-month average of 1.6 percent growth.
The slowdown was primarily attributed to reduced spending on large items such as furniture and household appliances. While high temperatures earlier in the summer spurred a surge in retail spending, this effect has now dissipated as autumn approaches. Food sales, however, saw a 2.6 percent increase in August, outpacing the 12-month average of 3.2 percent growth.
Despite this, overall non-food sales declined by 0.8 percent year-on-year. Industry experts warn that the cooling retail sales trend could persist, with Linda Ellett, head of consumer at KPMG, noting that the summer season "cooled off" for retail sales in August. Retailers are urging the government to ease its tax burden, particularly with regards to employer national insurance contributions and business rates, in order to stimulate retail investment and local economic growth.
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