PwC comments on September 2025 ONS retail sales figures

Commenting on the Office of National Statistics retail sales index for September 2025, Kien Tan, Senior Retail Advisor at PwC UK: 

“Retail sales have continued their slowly improving trend over the last three months, even as summer has turned into a rainy Autumn. The latest official numbers show that retail sales excluding petrol grew by 2.3% in volume terms this September compared with last year, a steady improvement on August’s restated 1.3% and July’s 0.8%. This translates into 4.0% more pounds in the till for retailers compared with last September.

“This means that retail sales volumes are now at their highest level since summer 2022, albeit still a little lower than pre-pandemic highs. So, despite the stalling consumer sentiment we recorded in our September survey, shoppers still seem to be cautiously spending more.

“The autumnal weather certainly helped fashion sales, with clothing retailers continuing their run of outperformance and encouraging shoppers to refresh their wardrobes with the newest season trends. 

“However, autumn showers also discouraged shoppers from visiting physical stores, as high street footfall fell and the proportion of sales online increased to 28%, which is the highest penetration of online retail since the end of the pandemic.

“While the third quarter has certainly brought some cheer to retailers following a more lacklustre start to 2025, the vast majority of retail sales take place in the last three months of the year. With the rising cost-of-living weighing on consumers’ minds according to our latest consumer sentiment survey, it’s not yet clear whether shoppers will be as keen to keep spending in the run-up to this Christmas. Much will depend on whether inflation has turned a corner and starts to subside. Real earnings are incrementally increasing, so shoppers do have cash to spend, but can retailers persuade them to part with their money this Christmas?”