Total like-for-like discretionary retail sales grew by 3.1% in September this year, down from 4.7% in September 2024, according to the latest BDO High Street Sales Tracker data.

In-store sales grew by 3.7% compared to the same month last year – one of the highest figures so far in 2025, and following on from August’s positive performance when in-store sales grew at their highest rate in two years.

Online sales were lower at 3.0% in September compared to a very strong base of 11.6% in September 2024. 

Despite these sales figures, the rate of both in-store and online growth was below the rate of inflation, meaning that sales volumes fell in September compared to last year.

Commenting on the data, Sophie Michael, Head of Retail and Wholesale at BDO, said: “These results will be seen as a positive trend as we move into the critical golden quarter, particularly given the exceptionally tough economic backdrop. 

However, Michael warns that the timing of the upcoming Autumn Budget on 26th November, two days before Black Friday, could have significant implications for the retail sector.

“There is no doubt that investment decisions are being deferred even further as businesses await the forthcoming Budget and understand its bearing on their short and medium term cashflows.” 

Michaels says there are indications retailers are reducing orders with suppliers, driven by concern over spending levels.

“Consumers will be approaching their spending choices with caution; the speculation and noise around the Chancellor’s Budget may cause the shopper to tighten their belts. Depending on the outcome, December will be critical to the Christmas trading results.”

She cautioned retailers to use promotions and pricing strategically during the peak trading period to attract consumer spending or risk being left with high excess stock come January setting them up for a challenging start to the new year.