Sluggish sales as shoppers look for Budget boost

13/10/2026

Covering the 5 weeks from 30 August to 3 October 2026

UK Total retail sales increased by 1.3% year on year in September, against a growth of 2.3% in September 2025. This was below the 12-month average growth of 1.5%.
Food sales increased by 2.5% year on year in September, against a growth of 4.3% in September 2025. This was below the 12-month average growth of 3.1%.
Non-Food sales increased by 0.3% year on year in September, against a growth of 0.7% in September 2025. This was above the 12-month average growth of 0.2%.
In-Store Non-Food sales increased by 0.1% year on year in September, against a growth of 0.5% in September 2025. This was above the 12-month average decline of 0.4%.
Online Non-Food sales increased by 0.7% year on year in September, against a growth of 1.0% in September 2025. This was below the 12-month average growth of 1.3%.
The online penetration rate (the proportion of Non-Food items bought online) increased to 38.3% in September from 37.9% in September 2025. 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.”

Linda Ellett, UK head of consumer, retail & leisure, KPMG, said: “September’s retail sales figures point to an increasingly selective consumer. Overall sales increased, driven by food, but non-food sales were essentially flat and have declined slightly across the last three months. This is a battle for share of wallet, with shoppers prioritising some categories while postponing purchases elsewhere. Fashion faced a particularly difficult September and while the prolonged summer has supported clothing and footwear, it may have delayed the move into autumn and winter wardrobes.

“With the Black Friday promotional period approaching, some consumers will inevitably be questioning whether today’s purchase might be cheaper tomorrow. That creates an important test for retailers as the Golden Quarter begins. If some of September’s weakness represents deferred rather than lost demand, there remains an opportunity to unlock spending, but retailers will need to balance customers’ increasing appetite for value against the need to protect margins.”

Sarah Bradbury, CEO, IGD, said: “September saw shoppers return to familiar routines as the summer holidays came to an end but despite the greater stability, shopper confidence dipped against a backdrop of surging prices at fuel pumps and planned rises in energy prices. Speculation around tax rises in the Budget will also be weighing on shoppers’ minds, with these factors adding pressure to household finances and translating into weaker spending. While Halloween may support impulse grocery sales in the short term, food businesses’ attention will be firmly on the Budget and what it could mean for consumer spending power, business costs and demand heading into 2027.”