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 lagged below the 12-month average of 1.6 per cent growth, dragged down by lower spending on big-ticket items like furniture and household appliances.
High temperatures had put a rocket behind retail spending earlier this summer. While the record heat dampened high street footfall, Brits splurged on items like fans and barbecues through online sellers.
But this heatwave boost to consumer spending is cooling as autumn nears, the BRC has found.
Linda Ellett, head of consumer at KPMG – which produced the BRC’s data – said: “Despite temperatures remaining high, summer season cooled off for retail sales in August.”
Record heat caused Brits to kick off their summer spending early, meaning that sales of most categories excluding food and drink are set to run out of steam earlier than expected, she said.
Food sales jumped by 2.6 per cent in August. While lower than the 3.2 per cent 12-month average, this growth dragged up the headline sales figure.
Non-food sales fell by 0.8 per cent year on year in August, compared to the 12-month average of 0.2 per cent.
All eyes on Budget
Harvir Dhillon, lead economist at the BRC, described August as a “disappointing” end to the summer for the UK’s retailers.
“With the cost of household bills rising, and set to rise further, many shoppers have clearly been tightening their belts.
“This was particularly true for discretionary spending, as big-ticket purchases like furniture and household appliances declined and consumers opted to instead treat themselves to smaller luxuries in health and beauty.”
Retailers are ramping up their demands on the government to slash their tax burden ahead of next month’s Budget.
Industry figures have called on Chancellor John Healey to unwind hikes to employer national insurance contributions and reform the business rates system, which they say is blighting the high street with closed-up shops.
“The new government has put high streets at the centre of their vision for better economic growth and the upcoming Budget is an opportunity to deliver on this commitment,” Dhillon said.
“Taking action on business rates and energy costs would help support retail investment in local communities while delivering value for consumers.”