Retail sales increased in August in the UK, boosted by rising food sales but growth remains sluggish and the retail environment ‘challenging’, a survey on Tuesday showed.

According to the British Retail Consortium-KPMG retail sales monitor, retail sales rose 1.0% year-on-year in August, picking up speed from growth of 0.5% in July. This was above the three-month average growth of 0.4% but below the 12-month average growth of 1.2%. In August 2023, retail sales increased 4.1%.

BRC Chief Executive Helen Dickinson said growth ‘picked up’, particularly for food as people came together to host barbecue and picnic gatherings for family and friends, and for summer clothing, health & beauty products as people prepared for trips away and summer social events.

Food sales increased 2.9% year-on-year over the three months to August, against growth of 8.2% a year prior. In the three months to July, food sales rose 2.6% year-on-year.

Non-food sales decreased 1.7% year-on-year over the three months to August, against a decline of 0.2% in August 2023. This was the same pace of decline seen in the three months to July.

In-store non-food sales over the three months to August decreased 2.8% year-on-year. This is below the 12-month average decline of 2.1%.

Online non-food sales increased by 1.5% year-on-year in August. This was above the 3-month average rise of 0.3% and above the 12-month average decline of 1.8%.

KPMG UK Head of Consumer, Retail & Leisure Linda Ellett said the ‘challenging’ retail environment is likely to ‘dominate for the rest of this year’.

Ellett pointed to ‘nervousness’ around potential tax rises and said consumer confidence remains ‘fragile’.

Copyright 2024 Alliance News Ltd. All Rights Reserved.