FX.co ★ UK Retail Sales Top Forecasts

In August 2025, UK retail sales volumes experienced a 0.5% increase compared to the previous month, consistent with the revised 0.5% growth observed in July and surpassing the anticipated 0.3% rise. This growth was predominantly driven by a notable performance in clothing stores (+5.3%), non-store retailing (+4.0%), and specialist food shops (+4.5%), with favorable weather conditions being highlighted by retailers as a significant factor. However, in the three months leading up to August, sales volumes showed a marginal decline of 0.1%, which was an improvement over the 0.6% decrease recorded in the three months to July. On a year-on-year basis, sales increased by 0.7% in August, slowing down from the 1.8% increase seen in July but still marking the third consecutive month of growth. When compared to the same three-month period in 2024, volumes were up by 0.8%, although activity remained 2.1% below pre-pandemic levels. Additionally, online sales values rose by 0.4% month-on-month and 4.7% year-on-year, with non-store retailing achieving its seventh consecutive monthly increase.