Non-food sales have faced ongoing challenges, with a YoY decrease of 1.7 per cent over the three months to August. This marks a significant decline compared to the 0.2 per cent drop in August 2023. Despite this, the recent figures are an improvement over the 12-month average decline of 2 per cent. For the month of August specifically, non-food sales continued to be in decline YoY.

In-store non-food sales have been particularly impacted, showing a 2.8 per cent decrease YoY over the three months to August. This is a sharp contrast to the 1.3 per cent growth experienced in August 2023 and falls below the 12-month average decline of 2.1 per cent.

On the other hand, online non-food sales presented a more optimistic picture, with a 1.5 per cent increase YoY in August. This compares favourably to the average decline of 1.7 per cent recorded in August 2023. The latest figures also surpass the three-month average increase of 0.3 per cent and the 12-month average decline of 1.8 per cent.

The online penetration rate for non-food items, which measures the proportion of these products bought online, rose slightly to 34.7 per cent in August, up from 34.1 per cent in August 2023. However, this is still below the 12-month average penetration rate of 36.3 per cent.

Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “Sales growth picked up in August, particularly for summer clothing, as people prepared for trips away and summer social events.

“Following a difficult summer for much of retail, and the possible weakening of consumer spending as energy bills rise come October, many will be waiting for the Chancellor’s Autumn Budget before finalising their investment strategies. Labour’s first budget is a golden opportunity to make good on their manifesto commitment and fix the broken business rates system which is holding back investment in people, places, technology and limiting growth. Decisive action will benefit working people across the country.”

Linda Ellett, UK head of consumer, retail and leisure, KPMG, said: “Despite summer finally making an appearance, and a slight uptick in consumer confidence, shoppers did not catch-up their spending during August, with total sales growth of only 1 per cent reflecting the challenging retail environment that is likely to dominate for the rest of this year. After many tough months of falling sales, sports and travel equipment enjoyed a welcome boost during this key summer holiday period, and sales of clothing also saw a second month of growth on the high street.

“Consumer sentiment is gradually starting to improve, but there still remains some nervousness around potential tax rises and the cost of putting the heating back on when the cooler weather arrives. The fragile nature of consumer confidence means shoppers will continue to be driven by price and value, moving from brand to brand to find the best price benefit and we are likely to see retailers using promotional activity to seek to win at this.”

Fibre2Fashion News Desk (DP)