UK retail sales rise 0.5% as online and department-store spending recovers

UK retail sales volumes rose by an estimated 0.5% in August 2026, recovering from a 0.5% decline in July, according to figures released by the Office for National Statistics on 18 September.

The quantity of goods bought was also 2.4% higher than in August 2025.

The less volatile three-month measure showed sales volumes increasing by 0.9% in the three months to August compared with the previous three months. They were 2.4% higher than during the same period a year earlier.

Online and department-store sales recovered

Non-store retailers, including online businesses, partially recovered from July's decline. Department stores also recorded stronger volumes after retailers reported stock-availability problems during July.

Online spending values increased by 2.5% during August and were 8.9% higher than a year earlier. Online purchases accounted for 28.8% of total retail spending, up from 28.4% in July.

Fuel sales provided a weaker signal

Fuel sales volumes fell during August as prices rose sharply. Retailers told the ONS that some customers appeared to be buying less fuel or only partially filling their tanks.

The verified figures

• Monthly retail sales volumes increased by 0.5%.
• Three-month volumes increased by 0.9%.
• Volumes were 2.4% higher than in August 2025.
• Online spending values increased by 2.5% during the month.
• The online share of retail spending rose to 28.8%.
• July's 0.5% monthly decline was unrevised.
• June's increase was revised from 0.7% to 0.6%.

The Apolifina view

The figures suggest that consumer demand retained some momentum during the summer, despite elevated inflation and higher energy and fuel costs.

That is modestly supportive for retailers and the wider economy. It could also reinforce the Bank of England's caution about reducing interest rates while inflation remains above target.

It should not, however, be treated as proof of a sustained consumer recovery. Monthly retail figures are volatile, June benefited from warm weather and sporting events, and sales were uneven across sectors. Retail volumes also measure goods rather than most household spending on services.

What investors should watch

Future retail releases will show whether August's recovery persisted as households faced higher fuel and energy costs. Company updates from supermarkets, clothing retailers and online sellers may also reveal whether stronger official volumes translated into improved margins.

Uncertainty

These are first estimates and may be revised. The survey response rate was 56.7% by returned forms, although respondents represented 92.3% of sampled turnover. Monthly changes should be considered alongside the smoother three-month measure.

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