UK retail sales growth eases in September - BRC

(Sharecast News) - UK retail sales growth eased in September as consumers remained cautious ahead of expected rises in household bills and taxes, according to industry data released on Tuesday. The latest BRC-KPMG retail sales monitor showed that total retail sales rose 1.3% year-on-year last month, down from 2.3% growth in September 2025 and coming in below 12-month average growth of 1.5%.

Growth in food sales eased to 2.5% from 4.3% last September, while non-food sales increased 0.3% year-on-year following a 0.7% rise in September 2025.

In-store non-food sales were up 0.1% in September, down from 0.5% growth in the same month a year earlier, while online non-food sales ticked up 0.7% following 1.0% growth in September 2025.

The retail sales monitor showed that the online penetration rate - the proportion of non-food items bought online - rose to 38.3% in September from 37.9% in the same month a year ago. This was above the 12-month average of 38.1%.

Helen Dickinson, chief executive at the British Retail Consortium, said: "Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes. There were some bright spots, health and beauty recorded its strongest month of the year so far as consumers continued to prioritise small indulgences and refresh their routines. Toys also performed well, helped by the launch of Pokémon's 30th anniversary products. Clothing and footwear had a weak month as unseasonally warm weather weakened demand, but back-to-school spending saw a boost.

"The Chancellor cannot promise to ease the cost of living while piling more costs onto the retailers working to keep prices down. With confidence fragile, this Budget is a critical test. Retailers will do everything they can to protect value for customers, but Government must play its part. Another rise in business rates would push up pressure on prices, choke off high-street investment and put local jobs at risk. This Budget must back retail to invest, employ and grow - not make it harder."