Retail sales slump in August as household costs pressure shoppers
August retail figures showed modest food growth but a decline in non-food sales, reflecting tighter household budgets amid rising bills.
In August, UK retailers posted mixed results: food categories grew 2.6% versus the previous year, but this lagged behind the 4.7% gain recorded in August last year and the 3.2% average over the past twelve months. By contrast, non-food sales fell 0.8% year-over-year, missing the 1.8% growth seen a year earlier and the modest 0.2% average increase. BRC lead economist Harvir Dhillon called the month disappointing, attributing the slowdown to rising household bills that are prompting shoppers to tighten spending.
While big-ticket items like furniture and appliances saw reduced demand, consumers still treated themselves to lower-cost health and beauty products. A recent bank survey showed consumer confidence in household finances rose to 66%, the highest in six months, yet a large majority remain concerned about escalating prices. Dhillon warned that geopolitical tensions in the Middle East could further strain household budgets if they persist.
