PwC comments on August 2026 ONS retail sales figures

"Retail sales volumes excluding petrol grew by 0.6% in August compared with July, reversing last month’s slower growth and continuing the trend of stronger retail performance over the summer. Compared with August 2025, retail sales volumes grew by 2.7%, which translates to 4.7% more pounds in shops’ tills, and is almost bang in line with the average growth we’ve seen through 2026 so far.

“The continuing hot weather in the early part of the month particularly helped supermarket sales, as shoppers stocked up on beer, wine and picnic foods. Predictably, sales of fans and air conditioning units also continued to boom as consumers sought respite from the hottest summer on record.

“However, the continuing decline in high street footfall meant that online retailers benefited the most. Online retail accounted for 28.8%, up from 28.4% in July. While the penetration of online sales was lower than in June, which had the benefit of widespread discounting, it is still higher than at any time since the end of the pandemic.

“August’s sales numbers cap a relatively strong 12 months of volume growth for the retail sector. With inflation yet to see the full effect of the Middle East conflict, consumers’ incomes rising in real terms, and the hot weather as well, consumer confidence has risen to the highest level we’ve seen in five years. That in turn has led to this strong run of performance.

“Retailers will be hoping that this positive momentum continues in the critical run up to Christmas. However, with inflation starting to rise, and energy and grocery price increases already forecast for the Autumn, shoppers may struggle to stretch their budgets as far in the coming months.”

-Ends-

Notes to Editors:  
Based on the 7am edition of ONS data released on 18th September here: https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/august2026