UK retail sales see boost in August, lead by clothing and footwear

Retail revenues are estimated to have increased in August, with strong growth in non-store retailing and clothing sales, according to the latest figures from the Office for National Statistics (ONS).

Retail sales volumes are forecast to have risen by 0.6% in July, following a 0.3% gain in June. Non-store retailing recorded a 2.5% increase in volumes, while sales of clothing and footwear also climbed by 2.5%. Household goods sales volumes edged up by 0.5%, although department store sales fell by 1.5%.

The ONS noted that the Oasis reunion contributed to stronger performance in hospitality and retail, as fans bought new outfits for the concerts, providing a boost.

Commenting on the data, RSM UK head of retail and ICAEW’s Retail Group chair Jacqui Baker said the combination of unusually hot summer weather, major sporting events, concerts and the influx of overseas visitors delivered positive results for the retail sector.

Baker explained that the delayed reporting had helped to balance some of the volatility seen earlier in the year, with sales strengthening after disruption caused by tax and tariff changes in April.

She added that although there was a small dip in consumer confidence in July, overall sentiment appeared to be improving. However, she cautioned that speculation over possible tax rises ahead of the rescheduled Budget could undermine progress. “This uncertainty could be a big hit to the all-important Golden Quarter, which would be particularly damaging for the retail sector,” she said.

The latest ONS data follows separate reports indicating that UK high street sales recorded their strongest growth since August 2023. Like-for-like retail sales across stores and online grew by 3.9% in August, compared with a decline of 0.7% in the same month last year, according to accountancy firm BDO’s high street sales tracker.