FX.co ★ UK Retail Sales Unexpectedly Rise in August

UK retail sales volumes rose 0.5% month-on-month in August 2026, beating market expectations for a 0.2% decline and reversing the 0.5% fall recorded in July. Non-store retailers partly recovered from July’s weakness, which had been driven by earlier promotional activity in June that pulled demand forward. Non-food store sales volumes increased by 0.6%, with department stores rebounding from earlier stock availability problems and clothing retailers recovering after subdued sales in July.

Online sales values climbed 2.5% in August, following a 4.2% drop in July. By contrast, fuel sales declined as sharp price increases prompted consumers to alter their purchasing behaviour, including opting to only partially fill their tanks.

Over the three months to August, retail sales volumes rose 0.9%, supported by warm weather, robust non-store and food sales, and stronger alcohol and beverage demand linked to promotional campaigns and the World Cup. On an annual basis, retail sales volumes were up 2.4%, outpacing the consensus forecast of a 1.9% increase and accelerating from a 1.2% rise in July.