ONS: Good Weather Boosts August Retail Sales

The ONS has published retail sales data for August.

Main points: 

Overview

• The quantity of goods bought (volume) in retail sales are estimated to have fallen by 0.1% in the three months to August 2025 when compared with the three months to May 2025. This was a slowing in the rate of decline when compared with the 0.6% fall in the three months to July 2025. 
  
  
• Falls in automotive fuel and computer and telecoms equipment stores were partly offset by increases in non-store retailing and clothing stores.

August

• Sales volumes remained slightly below early 2025 levels

• Sales volumes fell by 0.1% in the three months to August 2025, compared with the three months to May 2025. This was a slowing in the rate of decline when compared with the 0.6% fall in the three months to July 2025. August 2025 marked the third consecutive period of monthly growth, but volumes did not quite return to their recent March 2025 peak. However, when comparing with the three months to August 2024, sales volumes rose by 0.8%.

• Sales volumes rose by 0.5% over the month during August 2025, following a 0.5% rise in July, and rose by 0.7% over the year to August 2025.

• Volumes were down by 2.1%, compared with their pre-coronavirus (COVID-19) pandemic level in February 2020.

Retail sector volumes

• Three-monthly sales volumes fell the most in the other non-food sector, partially offset by rises in non-store retailing and clothing

• Sales volumes over the three months to August 2025 dropped marginally, with falls in other non-food stores, such as second-hand goods retailers (which includes auction houses and antiques dealers), and retailers of computers and telecoms equipment. Automotive fuel sales also fell. This was partly offset by an increase in non-store retailers (which are mainly online) and clothing stores.

• Sales volumes grew steadily over the month to August 2025, matching the July 2025 increase. Non-food stores (the total of department, clothing, household, and other non-food stores) rose by 1.1%. The rise was across all four sub-sectors, mainly because of increases in second-hand goods (within other non-food) and clothing stores. Retailer comments mentioned dry weather as a reason for the increase.

• Food stores also saw a rise. Specialist food stores (such as butchers and bakers) mostly recovered from poor sales in July 2025, with reports of improved footfall. Non-store retailers also increased, making this their seventh consecutive monthly rise.

• The Met Office climate summaries reported that the UK experienced below average rainfall, while temperatures were above average across all four nations.

 Online retail values

• Three-monthly online sales rose for the fifth consecutive period in August 2025
  
  

• The amount spent online, known as "online spending values", rose by 2.0% when comparing the three months to August 2025 with the three months to May 2025, and by 3.4% when comparing with the three months to August 2024.

• Total spend (the sum of in-store and online sales) rose by 0.6% over the month. As a result, the proportion of sales made online showed little change, falling from 27.7% in July 2025 to 27.6% in August 2025.

• Considering the monthly series, sales values rose by 0.4% over the month to August 2025, and by 4.7% when comparing August 2025 with August 2024.

Commentary

BRC:

Responding to the latest ONS Retail Sales Index figures, which showed sales up 3% by value, and up 1.2% by volume, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said: 

“August closed out a bright summer of retail sales on a high note, with volumes up for the third month in a row. The prolonged sunshine, bank holiday and interest rate cut all helped to boost sales, especially for clothing and books. People are also spending more on their homes, with furniture seeing a boost for another month following a long period of decline.  

“Even if this sales growth continues, it would not be nearly enough to mitigate the mass of costs hammering the industry since last year’s Budget. Business confidence remains weak. Earlier this summer, 56% of CFOs described their feelings about trading conditions over the next 12 months as “pessimistic”. And, there is little sign of improvement in the run up to Christmas, especially with the Budget falling so close to Black Friday and fears of potential further tax rises. Government can help improve confidence by ensuring business rates reforms deliver a meaningful reduction for retailers and that no shop pays more. This will allow retailers to invest more in jobs and stores, and most importantly, protecting customers from the increased costs filtering down to them.”

PWC:

Commenting on the Office of National Statistics retail sales index for August 2025, Jacqueline Windsor, Head of Retail at PwC, said: 

“Retail sales volumes excluding petrol grew by 1.2% in August compared with the same month last year, which translates into 3% more cash in shopkeepers' tills. Although growth was broadly the same versus July, sales were boosted this time last year by more widespread discounting, resulting in a more challenging comparable period in 2024. Clothing was one of the better performing categories, benefiting from good weather and end-of-season discounts.

“While footfall growth was flat across the country, the warm weather did bring more shoppers to high streets and town centres, as retail park footfall fell. Penetration of online retail stabilised at 27.6%, slightly below the previous month’s post-pandemic high.

“Overall, August caps off a better-than-expected summer, particularly for non-food retailers, with sales of seasonal lines boosted by the hottest summer temperatures on record. However, overall sales volumes remain below pre-pandemic levels, so the high street is far from being out of the woods.

“After some respite from the cost-of-living crisis last year, over four in five consumers now tell us they are concerned about inflation, at the same time as real earnings growth has slowed markedly. While headline CPI held steady in August, food inflation breached the 5% mark for the first time in 18 months, with retailers warning of further price rises as supermarkets pass higher costs onto customers in the Autumn.

“Higher weekly grocery bills inevitably lead to less money being available to spend on discretionary categories. For retailers, the timing of this inflationary pressure is unhelpful, with Christmas ranges starting to hit stores and less than 100 days to go before the big day. So, while summer’s retail sales may have exceeded expectations, continuing this momentum is far from certain.”

Source : ONS, BRC

Image : shutterstock / 1137631598 / William Barton

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