Retail sales increased by 0.5% in August 2025, after a rise of 0.5% in July 2025, according to the latest figures from the Office for National Statistics (ONS).

However, overall sales volumes decreased by 0.1% in the three months to August 2025, compared to the three months to May 2025.

This marked a slowdown in the decline rate in comparison to the 0.6% decrease in the three months to July 2025. The data also revealed that food store’s retail footfall activity increased month-over-month.

Nicholas Found, Head of Commercial Content at Retail Economics, commented: “Modest headline sales growth compared to last year is encouraging, but much of the uplift was driven by inflation, seasonal events and promotions, rather than a meaningful rebound in consumer confidence.

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“In this environment, it’s a battle for market share. Retailers are competing for a slice of constrained spending, where gains often come at a competitor’s expense.

Meanwhile, online shopping experienced a spending amount increase of 2% in the three months to August 2025, and sales values rose by 0.4% in the month to August. However, the boost in sales may be affected by the upcoming Autumn Budget.

Found added: “Confidence remains fragile, and with the Autumn Budget landing unusually late in the golden quarter, uncertainty around tax, borrowing costs and real incomes could drag on demand just as retailers enter their most important trading period.”