UK retail sales growth "subdued" as shoppers wait for budget

(Alliance News) - UK retail sales showed slower growth last month than a year prior, with households bracing themselves for higher bills and taxes, the British Retail Consortium reported on Tuesday.

Covering the five weeks from August 30 to October 3, the BRC said total retail sales rose 1.3% on an annual basis in September, slowing from 2.3% in September 2025, but better than 0.7% a month prior, between August 2 and August 29. It noted that this was below the 1.5% 12-month average climb.

Food sales growth slowed to 2.5% in September from 4.3% in September 2025 and was below the 12-month average of 3.1%. Non-food sales rose 0.3%, down from 0.7%, but growth remained above the 0.2% average.

Food sales growth was a notch lower than 2.6% a month prior, while non-food sales growth was better than a 0.8% decline.

In-store non-food sales rose 0.1%, slowing from 0.5%, while online non-food sales growth slowed to 0.7% from 1.0%. The BRC noted that the online penetration rate, the proportion of non-food items bought online, grew to 38.3% from 37.9%.

In-store non-food sales were better than a 1.2% fall a month prior, while online non-food sales growth was better than a 0.2% decline a month before.

"Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes," commented BRC Chief Executive Helen Dickinson. "There were some bright spots, health and beauty recorded its strongest month of the year so far as consumers continued to prioritise small indulgences and refresh their routines. Toys also performed well...Clothing and footwear had a weak month as unseasonally warm weather weakened demand, but back-to-school spending saw a boost.

"The chancellor cannot promise to ease the cost of living while piling more costs onto the retailers working to keep prices down. With confidence fragile, this Budget is a critical test. Retailers will do everything they can to protect value for customers, but government must play its part.

"Another rise in business rates would push up pressure on prices, choke off high-street investment and put local jobs at risk."

By Emma Curzon, Alliance News reporter

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