UK retail sales unexpectedly rise 0.5% in August

Sales rebound from 0.5% decline in July, beating market forecast for 0.2% fall

UK retail sales volumes unexpectedly increased by 0.5% month-on-month in August, official data showed Friday. The reading defied market expectations for a 0.2% decline and followed a 0.5% contraction in July, according to the Office for National Statistics (ONS). The increase was driven partly by a recovery among non-store retailers after declines in July, while department-store sales rebounded following earlier stock-availability problems. Non-food store sales volumes rose 0.6% from the previous month, supported by recoveries at department and clothing stores. Overall retail sales volumes were at their second-highest level since April 2022, just below the level recorded in June 2026. Fuel sales, however, fell during August as prices rose sharply, with retailers reporting that consumers were changing their behavior by making fewer journeys or only partially filling their tanks. On an annual basis, retail sales volumes increased 2.4% in August. Sales volumes also rose 0.9% in the three months through August compared with the previous three-month period and climbed 2.4% from the same period last year. Online spending values increased 2.5% month-on-month and 8.9% year-on-year in August. The share of retail transactions conducted online rose to 28.8% from 28.4% in July.