Dampened consumer demand hit retail sales last month, according to new figures from BRC-KPMG, as early summer heatwaves brought forward seasonal spending, leaving retail revenues flat.

For the period spanning the four weeks to 29 Aug 2026, total UK retail sales increased by +0.7% year-on-year, however this was below the rolling 12-month average of +1.6%.

While food sales held up, growing by 2.6% compared to 2025, non-food sales declined by -0.8% year-on-year, with categories including furniture and household appliances seeing the biggest falls.

“August was a disappointing month for retail sales,” said Harvir Dhillon, Lead Economist at the British Retail Consortium (BRC). “Despite pockets of growth, particularly in some food categories, overall performance was below the average for the past year.”

“With the cost of households bills rising, and set to rise further, many shoppers have clearly been tightening their belts.”

“Despite temperatures remaining high, summer season cooled off for retail sales in August,” Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, added. She attributed some of the subdued performance in August to early UK heat waves pulling summer spending forwards.

“Summer spending started in May this year, as earlier higher temperatures pulled forward related purchases,” she said. “And while the heat and holiday spending continued to drive food, drink, health and beauty sales into August, most other categories couldn’t sustain another month of growth.”

Footfall performance followed a similar trajectory, seeing an end-of-summer slow down.

Sensormatic’s data showed total UK footfall saw a -1.7% year-on-year dip in August, with High Streets experiencing the sharpest decline of -3.1% compared to 2025.

Looking ahead to the Golden Quarter, retailers will need to focus on converting any modest footfall into meaningful spend, according to Andy Sumpter, Sensormatic’s EMEA Head of Consulting & Analytics.

“With the industry’s most important trading period fast approaching, there are reasons for cautious encouragement, but not complacency,” he said. “The challenge for retailers remains unchanged: converting a modest improvement in footfall into meaningful spend.”