Retail sales volumes are estimated to have risen by 0.5% in August 2026, according to the latest data from the Office for National Statistics (ONS). This follows a fall of 0.5% in July 2026, and a rise of 0.6% in June 2026 . 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.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Retail sales performed better than expected in August as improving consumer confidence and the last of the summer heatwaves encouraged an uptick in spending across almost all categories. Consumers have bounced back after a minor spending setback in July, with sales volumes across the summer indicating a willingness to loosen the purse strings and spend on not just smaller luxuries, but other purchases too. Food sales performed well again, supported by slowing food inflation, strong competition and increased promotional activity.
“Looking ahead, there is optimism around a recovery in consumer confidence and how this could translate to increased spending momentum. Our data shows that consumers intend to spend more in September, encouraged by the changing of the seasons, back to school, and transitioning wardrobes and wares. However, the upcoming Budget will no doubt be front of mind for many retailers and consumers. The anticipated outcome of the Chancellor’s announcements could impact spending sentiment on the approach to the Golden Quarter.”
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.”
