UK retail sales ticked up in August in a summertime boost
UK retail sales ticked up in August, according to fresh data, after consumer confidence was boosted by good weather.
Retail sales volumes increased by 1.0 per cent year on year in the four weeks to 24 August, against a growth of 4.1 per cent in August 2023, the British Retail Consortium (BRC) said.
Non-food sales fell 1.7 per cent year on year over the three months to August against a decline of 0.2 per cent in August 2023 and above the 12-month average decline of 2.0 per cent.
Food sales increased 2.9 per cent year on year, up from 2.6 per cent in the three months to July.
Chief executive of the BRC, Helen Dickinson, said that food sales were boosted “as people came together to host barbecue and picnic gatherings for family and friends.”
“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.
Labour’s first budget is a golden opportunity to make good on their manifesto commitment and fix the broken business rates system which is holding back investment in people, places, technology and limiting growth,” Dickinson added.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “Despite summer finally making an appearance, and a slight uptick in consumer confidence, shoppers did not catch up their spending during August, with total sales growth of only 1 per cent, reflecting the challenging retail environment that is likely to dominate for the rest of this year.
“Consumer sentiment is gradually starting to improve, but there still remains some nervousness around potential tax rises and the cost of putting the heating back on when the cooler weather arrives.
“The fragile nature of consumer confidence means shoppers will continue to be driven by price and value, moving from brand to brand to find the best price benefit and we are likely to see retailers using promotional activity to seek to win at this.”
The fresh data comes alongside news that card spending returned to growth last month after a similar boost from the summer weather as well as spending on ‘little luxuries’ like cosmetics and baked goods.
Consumer confidence was stable at a three-high year in August, despite a worsening outlook for the broader economy.