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UK retail sales growth eases as consumers await Budget measures

Oct 21, 2026 United Kingdom

According to the British Retail Consortium (BRC), retail sales growth in the UK slowed to 1.3% in September from 2.3% in the same period a year earlier, as consumers remained cautious ahead of the Budget

The BRC reported that total retail sales growth in the UK fell from 2.3% to 1.3% between the 30th of August and the 3rd of October, which was below the 12-month average of 1.5%.

Food sales increased by 2.5% during the period, which was down from 4.3% in the same month of 2025. Meanwhile, non-food sales rose by just 0.3% year-on-year, compared to growth of 0.7% in September 2025. The data also revealed that in-store non-food sales grew by 0.1%, whereas online non-food sales increased by 0.7%. Online purchases accounted for 38.3% of non-food sales, up from 37.9% in September.

Altogether, this suggests continued pressure on discretionary spending. “Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes”, said Helen Dickinson, Chief Executive at the British Retail Consortium. Clothing and footwear, in particular, had a weak month due to “unseasonably warm weather”, which reduced demand, despite a boost in back-to-school spending.

Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, added: “September’s retail sales figures point to an increasingly selective consumer. Overall sales increased, driven by food, but non-food sales were essentially flat and have declined slightly across the last three months. This is a battle for share of wallet, with shoppers prioritising some categories while postponing purchases elsewhere”.

Sarah Bradbury, chief executive of IGD, commented that consumer confidence had weakened amid rising fuel prices, planned energy price increases and speculation about potential tax rises in the Budget.

The BRC urged Chancellor John Healey to support retailers in the upcoming Budget, warning that higher business rates could put further pressure on prices, investment and employment. The BRC called for measures that would encourage business growth and help retailers to navigate the challenging trading environment.

Image Credits: independent.co.uk

United Kingdom Economy Organisations Retail Sales