FX.co ★ UK Retail Sales Fall More Than Expected

UK retail sales volumes fell by 0.4% month-on-month in September 2026, a sharper decline than the 0.1% drop forecast by economists, and followed an upwardly revised 0.7% increase in August. Demand at online clothing retailers was hit by unseasonably warm weather, which dampened interest in autumn and winter collections, while lower footfall and consumer spending cutbacks weighed on clothing and footwear, sports equipment, and household goods stores. Overall, non-food store sales volumes fell by 0.4%.

Supermarket sales also declined after posting gains in July and August. By contrast, automotive fuel sales rose despite higher prices.

For the third quarter as a whole, retail sales volumes increased by 0.7% quarter-on-quarter and 1.5% year-on-year, supported by fuel and food store sales. Warm weather, promotional activity, and the World Cup also boosted sales of alcohol and beverages. On an annual basis, retail sales volumes in September were up 0.8%, undershooting expectations for a 1.0% rise and slowing markedly from 2.7% growth in August.