Total sales across the discretionary retail categories grew by just +2.2% in August, compared to +3.9% in the same month last year, according to the latest BDO High Street Sales Tracker.

It warned that growth remained below the rate of inflation, meaning sales volumes have dropped for the sixth time this year.

Looking back over the last eight years of online and in-store sales, BDO said that retail sales performance last month fell below the overall average for August, excluding pandemic.

Whilst August is traditionally a strong month for retail sales as Back To School shopping and new Autumn ranges help drive demand, this year failed to deliver. Store sales grew +3.6%, compared to +5.2% last August, while non-store sales increased +2.3%, significantly below the +6.6% recorded last year.

Separate footfall data from the British Retail Consortium (BRC) and Sensormatic mirrored this trend, showing UK store traffic experienced a -1.7% year-on-year dip in August, with High Streets experiencing the sharpest decline of -3.1% dip compared to 2025.

“Whilst August is traditionally a strong month for the sector, these figures point to deeper issues where consumers remain reluctant to spend on non-essential items,” Sophie Michael, Head of Retail and Wholesale at BDO, commented. 

“As we prepare to enter the so-called Golden Quarter, the most crucial time of year for the sector, retailers may have already made decisions about order volumes ahead of Christmas,” she continued.

“With the first Budget under the new Prime Minister and Chancellor due at the end of October, pressure is likely to grow on the Government to provide targeted support for retailers as they brace for the most important trading period of the year.”