UK retail sales growth remained subdued in September as households continued to spend cautiously amid concerns over rising bills and potential tax increases in the upcoming Autumn Budget, according to the latest British Retail Consortium (BRC)-KPMG Retail Sales Monitor.
Total UK retail sales grew by 1.3% year on year in September, down from 2.3% growth during the same period in 2025 and below the 12-month average of 1.5%.
Helen Dickinson, Chief Executive at the British Retail Consortium, said: “Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes.”
She also warned: “With confidence fragile, this Budget is a critical test. Retailers will do everything they can to protect value for customers, but Government must play its part.”
Food continued to outperform non-food, although growth slowed across both categories. Food sales increased by 2.5%, compared with 4.3% a year earlier, while non-food sales rose by just 0.3%, down from 0.7% in September 2025.
Non-food sales remained subdued both in-store and online. In-store non-food sales increased by just 0.1%, compared with 0.5% last year, while online non-food sales grew by 0.7%, down from 1.0%.
Despite slower growth, online’s share of non-food sales increased to 38.3%, up from 37.9% a year earlier and above the 12-month average of 38.1%.
Health and beauty was among the stronger-performing categories during September, recording its strongest month of the year so far, while toys benefited from the launch of products celebrating Pokémon’s 30th anniversary. Clothing and footwear struggled as unseasonably warm weather affected demand for autumn and winter ranges, although back-to-school shopping provided some support.
Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, said: “This is a battle for share of wallet, with shoppers prioritising some categories while postponing purchases elsewhere.”
Looking ahead, she added: “With the Black Friday promotional period approaching, some consumers will inevitably be questioning whether today’s purchase might be cheaper tomorrow. That creates an important test for retailers as the Golden Quarter begins.”
The pressure on household finances is also raising concerns about consumer spending in the months ahead.
Sarah Bradbury, CEO at IGD, said: “Speculation around tax rises in the Budget will also be weighing on shoppers’ minds, with these factors adding pressure to household finances and translating into weaker spending.”
