August rounded off a solid summer of sales, aided by sunny weather and an interest rate cut.

Total UK retail sales rose 3.1% year on year for the four weeks from 3 August to 30 August, against 1% growth last year, according to the British Retail Consortium (BRC).

Food revenues were up 4.7% over the period, compared to growth of 3.9% in August 2024, while non-food sales increased 1.8% compared to a 1.4% decline the same time last year.

In-store non-food sales climbed 1.3% over the period, from a drop of 2.8% in August 2024.

Additionally, online non-food revenues jumped 2.7% over the month, compared to 1.5% growth last year.

The trade association’s CEO Helen Dickinson said: “Sunny weather and an interest rate cut helped August round off a solid summer of sales. Computing performed well as parents readied children for the new academic year, and gaming continued to show strong sales.

“Furniture also did better for the second month in a row, following several months of falling sales. New school clothing and footwear did not sell as well as expected, as some families opted for second-hand purchases.

“Stronger growth in food and drink was largely down to rising prices, which rose over 4% in August, rather than increasing volumes.”

She noted: “Despite a better summer, retailers approach the ‘golden quarter’ with caution. With the later-than-expected Budget falling just days before Black Friday, many are uneasy about how consumer confidence and spending could be impacted by tax rise speculation in the run-up to Christmas.

“Government needs to shore up both consumer and business confidence. An assurance that the business rates reforms will deliver a meaningful reduction for retail and hospitality would remove uncertainty, give businesses the confidence to invest in local communities and help limit the price rises which are worrying consumers.”

In August, it was reported that households remained cautious as inflation and economic uncertainty continued to bite, despite UK consumer confidence rising slightly over the month.

According to the BRC-Opinium Consumer Sentiment Monitor, confidence in the state of the economy increased to -32 in August, up from -33 in July.

Last week, the latest high street sales tracker from BDO also revealed that retail sales climbed last month, as the high street saw its highest growth since August 2023.

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