UK food sales increased 2.9% year on year over the three months to August as more people came together for summer barbecue and picnic gatherings.

But this was against growth of 8.2% in August 2023 and below the 12-month average growth of 5%, the latest British Retail Consortium (BRC)-KPMG retail sales monitor showed.

Meanwhile, total retail sales increased by just 1% year on year last month, against a growth of 4.1% in the year prior.

KPMG UK head of consumer, retail and leisure Linda Ellett said this figure reflects “the challenging retail environment that is likely to dominate for the rest of this year”.

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BRC chief executive Helen Dickinson said: “Sales growth picked up in August, particularly for food as people came together to host barbecue and picnic gatherings for family and friends.”

However, she added: “Following a difficult summer for much of retail, and the possible weakening of consumer spending as energy bills rise come October, many will be waiting for the Chancellor’s Autumn Budget before finalising their investment strategies.

“Labour’s first budget is a golden opportunity to make good on their manifesto commitment and fix the broken business rates system which is holding back investment in people, places, technology and limiting growth. Decisive action will benefit working people across the country.”

Last month, Sainsbury’s CEO Simon Roberts and Usdaw general secretary Paddy Lillis warned that more than 17,000 shops across the UK could be at risk of closure in the next ten years without government reform of the business rates levy.