Commenting on the Office of National Statistics retail sales index for August 2025

Commenting on the Office of National Statistics retail sales index for August 2025, Jacqueline Windsor, Head of Retail at PwC, said: 

“Retail sales volumes excluding petrol grew by 1.2% in August compared with the same month last year, which translates into 3% more cash in shopkeepers' tills. Although growth was broadly the same versus July, sales were boosted this time last year by more widespread discounting, resulting in a more challenging comparable period in 2024. Clothing was one of the better performing categories, benefiting from good weather and end-of-season discounts.

“While footfall growth was flat across the country, the warm weather did bring more shoppers to high streets and town centres, as retail park footfall fell. Penetration of online retail stabilised at 27.6%, slightly below the previous month’s post-pandemic high.

“Overall, August caps off a better-than-expected summer, particularly for non-food retailers, with sales of seasonal lines boosted by the hottest summer temperatures on record. However, overall sales volumes remain below pre-pandemic levels, so the high street is far from being out of the woods.

“After some respite from the cost-of-living crisis last year, over four in five consumers now tell us they are concerned about inflation, at the same time as real earnings growth has slowed markedly. While headline CPI held steady in August, food inflation breached the 5% mark for the first time in 18 months, with retailers warning of further price rises as supermarkets pass higher costs onto customers in the Autumn.

“Higher weekly grocery bills inevitably lead to less money being available to spend on discretionary categories. For retailers, the timing of this inflationary pressure is unhelpful, with Christmas ranges starting to hit stores and less than 100 days to go before the big day. So, while summer’s retail sales may have exceeded expectations, continuing this momentum is far from certain.”

Ends