Retailers sales rise in August boosted by summer discounts and warmer weather

Sales volumes rose by 1.2% in the three months to August 2024, when compared with the three months to May 2024

UK retailers experienced a sales surge last month, with summer bargains and warmer weather giving a boost to clothes shops and grocers, new data suggests.

The Office for National Statistics (ONS) reported retail sales volumes, which tally the amount purchased, climbed by 1% in August, surpassing many forecasts—economists had anticipated just a 0.4% uptick for the month. This uplift comes even as consumer confidence takes a dive, with the public bracing for next month’s autumn Budget.

The ONS's top economist Grant Fitzner commented: “Retail sales rose in August as warmer weather and end-of-season promotions helped to boost sales, most notably for clothing and food shops. Looking at the broader picture, retail sales have also increased across the three month and annual period, following strong growth from online retailers. However, sales overall remain slightly below their pre-pandemic level."

The latest figures build on a 0.7% jump in sales volumes in July, which was an upward revision from an initial guess of a 0.5% rise, buoyed by discounts and major sports events like the Euros. Over the three-month span ending in August 2024, sales volumes were up by 1.2% compared to the preceding three months.

Meanwhile, GfK’s Consumer Confidence Index took a hit in September, dropping seven points to minus 20. This was largely due to significant decreases in predictions for personal finances and the general economy over the coming year. Expectations for the general economy over the next 12 months fell by 12 points to minus 27, while the forecast for personal finances dropped nine points to minus three. Kris Hamer, director of insight at the British Retail Consortium, commented: “With summer in full swing, sales growth picked up in August.

"Computing performed well as extensive summer discounting encouraged consumers to upgrade their tech, and students organised themselves for the new academic year. Food, cosmetics, and fashion sales also had a good month as people hosted family and friends for picnics and barbecues and prepared for summer holidays and other social events.

"Meanwhile, furniture and household goods failed to shine, as people opted to spend their money on experiences instead. Clearly, the high cost of living still bears down on consumers, meaning demand may dip further when energy bills rise once again in October."