UK retail sales rebound in August as department stores recover

British retail sales surged in August 2026, defying predictions of a decline and outperforming expectations. The Office for National Statistics reported a 0.5% increase in sales volumes, marking a reversal from the 0.5% drop seen in July. This rebound saw sales volumes surpass their 2.4% growth compared to August 2025 and reach their second-highest point since April 2022. Over the three months leading up to August, sales volumes grew 0.9% year-over-year and were 2.4% higher than the same period a year prior.

The improvement was particularly notable in non-store retailers, which witnessed a strong performance. This sector drove a robust June, benefiting from promotional activities, favorable weather conditions, and the World Cup. Notably, supermarkets achieved positive results in both July and August. The mixed fortunes of department stores and clothing stores were attributed to stock availability issues and late effects of June promotions, respectively.

Meanwhile, online sales values increased by 2.5% month-over-month, recovering from a 4.2% decline in July, and were 8.9% higher than in August 2025. Over the three-month period, online spending values grew 1.9% year-over-year and were 10.1% higher than the same period a year earlier. Total spending, combining in-store and online sales, rose 1.3% month-over-month, with online sales accounting for 28.8% of total sales in August, up from 28.4% in July.