ONS: Retail Sales Beat Expectations in August

The ONS has published retail sales data for August, noting that the quantity of goods bought (volume) in retail sales is estimated to have risen by 0.9% in the three months to August 2026, compared with the three months to May 2026. Non-store retailers' sales volumes rose following a particularly strong June period, while food stores did well across the latest three months.

Retail sales volumes are estimated to have risen by 0.5% in August 2026. This follows a fall of 0.5% in July 2026 (unrevised from our previous bulletin), and a rise of 0.6% in June 2026 (revised down from a 0.7% rise in our previous bulletin). Non-store retailers partially recovered from falls in July 2026, with lower sales volumes in July attributed to promotions occurring earlier in June 2026. Department stores also picked up in August following stock availability issues in July.

Retail sales in August 

Sales volumes rose over the three months to August 2026, while monthly volumes partially recovered from a fall in July

In the three months to August 2026, sales volumes:

• rose by 0.9% compared with the three months to May 2026

• rose by 2.4% compared with the three months to August 2025

In August 2026, sales volumes:

• rose by 0.5% over the month, following a fall of 0.5% in July 2026

• rose by 2.4% compared with August 2025

Retail sector volumes 

Strong sales volumes in June 2026 contributed to a rise over the three months to August 2026

Sales volumes rose by 0.9% in the three months to August 2026 compared with the three months to May 2026. Non-store retailers' sales volumes grew strongly in June 2026. The warm weather increased sales of items such as fans and air conditioning units, with retailers also benefitting from sales of sports merchandise and clothing. Food stores also rose over the three months, with supermarkets doing well in both July and August. Retailers selling alcohol and beverages performed well across all three months to August 2026, which they attributed to promotions, the hot weather, and the World Cup.

Non-food stores sales volumes (the total of department, clothing, household, and other non-food stores) rose by 0.2% over the three months to August, with sales volumes up for both clothing retailers and art dealers in June.

Fuel sales fell in the three months to August 2026 compared with the three months to May 2026. Many retailers reported that the rise in sales volumes in March 2026 was because motorists had stocked up on fuel as a result of the conflict in the Middle East. This was followed by a fall in fuel sales in April 2026, as retailers suggested that motorists made fewer journeys and delayed filling their tanks as prices rose. Following a rise in sales in July 2026, fuel sales volumes fell over the month to August as prices rose sharply. Retailers suggested consumer habits may be changing in reaction to high prices, such as only partially filling their tanks.

Total sales volumes (including automotive fuel) rose by 0.5% over the month to August 2026, and were at their second highest level since April 2022, just below June 2026. Non-store retailers' sales volumes partially recovered in August from a fall in July. This was attributed to earlier promotional activity in June resulting in lower July sales, while some non-store retailers also reported that sales were strong in August. Non-food stores sales volumes rose by 0.6% on the month, with department stores recovering from a fall in July which retailers attributed to stock availability issues. Furthermore, clothing stores partially recovered from a fall in July, when it was reported that promotional activity in June pulled sales forward.

Online retail values 

Online sales rose over both the month and the three months to August 2026

The amount spent online, known as "online spending values", rose by 1.9% in the three months to August 2026 compared with the three months to May 2026. Online spending values rose by 10.1% on the three months to August 2025.

Within the monthly series, online sales values rose by 2.5% over the month to August 2026, up from a fall of 4.2% in July, and were 8.9% higher compared with August 2025.

The total spend (the sum of in-store and online sales) rose by 1.3% over the month. As a result, the proportion of sales made online rose from 28.4% in July 2026 to 28.8% in August 2026.

Commentary

PwC UK comments on ONS Retail Sales Data for August 2026

Commenting on the Office of National Statistics retail sales index for August 2026, Jacqueline Windsor, Head of Retail at PwC UK, said:   

"Retail sales volumes excluding petrol grew by 0.6% in August compared with July, reversing last month’s slower growth and continuing the trend of stronger retail performance over the summer. Compared with August 2025, retail sales volumes grew by 2.7%, which translates to 4.7% more pounds in shops’ tills, and is almost bang in line with the average growth we’ve seen through 2026 so far. 

“The continuing hot weather in the early part of the month particularly helped supermarket sales, as shoppers stocked up on beer, wine and picnic foods. Predictably, sales of fans and air conditioning units also continued to boom as consumers sought respite from the hottest summer on record. 

“However, the continuing decline in high street footfall meant that online retailers benefited the most. Online retail accounted for 28.8%, up from 28.4% in July. While the penetration of online sales was lower than in June, which had the benefit of widespread discounting, it is still higher than at any time since the end of the pandemic. 

“August’s sales numbers cap a relatively strong 12 months of volume growth for the retail sector. With inflation yet to see the full effect of the Middle East conflict, consumers’ incomes rising in real terms, and the hot weather as well, consumer confidence has risen to the highest level we’ve seen in five years. That in turn has led to this strong run of performance. 

“Retailers will be hoping that this positive momentum continues in the critical run up to Christmas. However, with inflation starting to rise, and energy and grocery price increases already forecast for the Autumn, shoppers may struggle to stretch their budgets as far in the coming months.” 

Treyd

Peter Beckman, CEO of working capital provider Treyd, said: 

“There’s been a feeling of some positive momentum building over the summer, so it’s pleasing to see this reflected in a stronger set of data. 

“Consumers have become accustomed to managing their household finances around a higher oil price, the UK political mood feels slightly more upbeat and a scorching summer created a feelgood vibe. Brits love to shop and will always do what they can to adjust and continue to spend.

“Yet the health of retail firms themselves varies wildly and the tough climate of recent years has forced many to assess the viability of their business models. The best-performing companies have prioritised margins over chasing sales, and managed cashflow carefully. Meanwhile, some have made strategic decisions like moving out of wholesale to focus on building direct relationships with consumers and nurturing customer communities.

“The final third of the year will, as ever, prove the decisive period for retailers. Many will be smartly managing their inventory to ensure they’re in the best position to serve anxious consumers who may begin Christmas shopping early and target Black Friday bargains to manage their household budgets.”

Source : ONS; PwC; Treyd

Image : Cunaplus_M.Faba / iStock / 1087671624

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