UK retail sales show modest growth amid summer spending

Retail sales in the UK saw a slight uptick in August, driven by summer-related purchases, according to the latest BRC-KPMG Retail Sales Monitor. Total retail sales increased by 1 percent year-on-year, outpacing the three-month average growth of 0.4% but falling short of the 12-month average of 1.2 percent.

Non-food sales, which includes fashion, continued to struggle, declining 1.7 percent year-on-year over the same period. This represents a slight improvement over the 12-month average decline of 2.0 percent, but highlights ongoing challenges in discretionary spending.

Helen Dickinson, Chief Executive of the British Retail Consortium, noted the positive impact of summer activities on sales but expressed caution about the autumn outlook. "Following a difficult summer for much of retail, and the possible weakening of consumer spending as energy bills rise come October, many will be waiting for the Chancellor's Autumn Budget before finalising their investment strategies," she said.

Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, highlighted the fragile nature of consumer confidence, suggesting that shoppers will continue to prioritise value. "As green shoots of growth start to appear, those retailers looking to seize on slowly returning consumer confidence will need to demonstrate best value for money," Ellett commented.

As the retail sector navigates these mixed signals, the upcoming autumn season and government policy decisions are likely to play crucial roles in shaping consumer spending patterns and retailer strategies for the remainder of the year.