Retail Sales in Great Britain Rebound 0.5% in August After July Decline

Retail sales volumes in Great Britain rose 0.5% in August, reversing July’s 0.5% decline as non-store retailers and department stores recovered from a softer month. The increase returned total sales volumes, including automotive fuel, close to June’s recent high.

The August gain followed an unrevised 0.5% fall in July and a 0.6% increase in June, which was revised down from 0.7%. Monthly retail figures can be volatile, but the broader trend also improved: volumes rose 0.9% in the three months through August compared with the previous three months and were 2.4% higher than in the same period a year earlier.

The Office for National Statistics said in its August retail sales bulletin that volumes were also 2.4% higher than in August 2025. Total sales volumes were at their second-highest level since April 2022, just below June 2026. The ONS volume series tracks the quantity of goods bought, making it a measure of real retail activity rather than simply the amount of money consumers spent.

Three-month growth was broader than the August rebound

The 0.9% increase over the latest three months reflected strength in several parts of retailing, although the timing of promotions made the monthly path uneven. Non-store retailers recorded particularly strong sales volumes in June. Retailers told the ONS that warm weather supported purchases of products such as fans and air-conditioning units, while sports merchandise and clothing also contributed.

Food stores performed well across the three months through August, with supermarkets reporting solid sales in both July and August. Retailers selling alcohol and beverages also recorded strength across the period, which they attributed to promotions, hot weather and the World Cup. Those reports help explain why the three-month measure remained positive even after the headline index fell in July.

Non-food store volumes, covering department stores, clothing, household goods and other non-food retailers, increased 0.2% in the three months to August compared with the three months to May. The ONS highlighted gains at clothing retailers and art dealers in June. The sector’s contribution was therefore smaller than the boost from some non-store and food businesses, but it still added to the broader expansion in retail volumes.

Online spending and non-food stores recover

August’s monthly rebound was most visible in areas that had weakened in July. Non-store retail volumes partially recovered after the previous month’s fall. The ONS said some retailers linked July’s weakness to promotional activity that had taken place earlier in June, effectively shifting some purchases into the prior month, while some non-store businesses reported stronger sales again in August.

Non-food store volumes rose 0.6% over the month. Department stores recovered from July, when retailers had reported stock-availability problems, while clothing stores also partially regained ground after June promotions had pulled some demand forward. The pattern suggests that part of the July decline reflected timing and supply issues rather than a uniform retreat across all retail categories.

Online spending values strengthened as well. The amount spent online rose 2.5% in August after falling 4.2% in July and was 8.9% higher than a year earlier. Across the three months to August, online spending increased 1.9% from the previous three months and 10.1% from a year earlier. Total retail spending, combining in-store and online purchases, rose 1.3% in August, and the online share of sales increased to 28.8% from 28.4% in July.

Those spending figures are not identical to the volume measures in the headline. Sales values capture the amount of money spent, while volume estimates adjust for price changes to gauge the quantity bought. The distinction is especially relevant when prices are moving quickly, because consumers can spend more pounds without purchasing proportionately more goods.

Fuel sales weaken as higher prices pressure motorists

Automotive fuel moved in the opposite direction from the overall August increase. Fuel sales volumes fell during the month and were also lower across the three months to August compared with the three months to May. Retailers told the ONS that fuel prices rose sharply in August and suggested that some motorists were responding by only partly filling their tanks.

Separate ONS inflation data released earlier in the week showed why fuel had become a bigger pressure on household budgets. Consumer Price Index inflation rose to 3.1% in the 12 months to August from 2.9% in July, with transport making the largest upward contribution to the change in the annual rate. Average petrol prices increased by 9.1 pence per litre between July and August to 161.3 pence, while diesel rose by 14.2 pence to 181.8 pence. Motor fuel prices were 23.0% higher than a year earlier.

The retail bulletin also showed how volatile fuel demand has been during 2026. Retailers reported that motorists stocked up in March as the conflict in the Middle East raised concerns about fuel supply and prices. Fuel sales then fell in April as prices increased, with retailers saying some customers made fewer journeys or delayed filling up. Volumes rose again in July before declining in August. Those retailer reports do not prove that price changes alone caused each move, but they provide context for the latest fall in fuel volumes.

For the broader retail sector, August restored some of the ground lost in July without changing the need to read the monthly figures alongside the smoother three-month trend. The next ONS retail sales release is scheduled for 23 October 2026 and will cover September, providing the next test of whether the August recovery carried into early autumn.