UK retail sales growth slowed to 1.3% year-on-year in September

what happened

Sharecast, citing the latest BRC-KPMG retail sales monitor, reported that total UK retail sales increased 1.3% year-on-year in September. That was slower than the 2.3% rise recorded in September 2025 and below the 12-month average growth rate of 1.5%.

Food sales growth eased to 2.5% from 4.3% a year earlier. Non-food sales rose 0.3%, compared with a 0.7% increase in September 2025. In-store non-food sales advanced 0.1%, while online non-food sales grew 0.7%, down from 1.0% in the same month last year.

The share of non-food purchases made online increased to 38.3% from 37.9% a year earlier, exceeding the 12-month average of 38.1%. Helen Dickinson, chief executive of the British Retail Consortium, said households remained cautious ahead of expected increases in bills and taxes. Health and beauty had its strongest month of the year so far, while toys benefited from Pokémon’s 30th anniversary products. Clothing and footwear weakened as unusually warm weather reduced demand. Dickinson also urged the government not to add to retailers’ costs in the upcoming Budget.

why it matters

The softer sales figures point to cautious UK household spending and may keep markets focused on the outlook for consumption, inflation and government fiscal policy.

instruments