UK food sales growth slowed to 2.5 per cent year on year in September, down from 4.3 per cent in the same month last year, as household budget pressures continued to weigh on spending, according to the British Retail Consortium (BRC).
Food sales growth was also below the 12-month average of 3.1 per cent, while total retail sales increased by 1.3 per cent, compared with 2.3 per cent growth in September 2025, the BRC-KPMG Retail Sales Monitor showed.
“Retail sales growth remained subdued in September as households are still cautious with their spending ahead of expected rises in household bills and taxes,” Helen Dickinson, chief executive of the BRC, said.
Non-food sales rose by just 0.3 per cent year on year, below the 0.7 per cent growth recorded in September 2025, although this was above the 12-month average of 0.2 per cent.
Health and beauty recorded its strongest month of the year so far, as consumers continued to prioritise small indulgences and refresh their routines. Toys also performed well, helped by the launch of Pokémon's 30th anniversary products.
However, clothing and footwear had a weak month as unseasonably warm weather dampened demand, although back-to-school spending provided a boost.
Dickinson urged the government to avoid further increases in business rates, warning that additional costs could put pressure on prices, discourage high-street investment and threaten local jobs.
“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,” she said.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said non-food sales had declined slightly over the past three months as shoppers prioritised certain categories while postponing purchases elsewhere.
With Black Friday approaching, she warned that some consumers might delay purchases in anticipation of lower prices, creating a challenge for retailers as the Golden Quarter begins.
“If some of September's weakness represents deferred rather than lost demand, there remains an opportunity to unlock spending, but retailers will need to balance customers' increasing appetite for value against the need to protect margins,” Ellett noted.
Sarah Bradbury, chief executive of IGD, said shopper confidence had weakened amid rising fuel prices, planned energy price increases and uncertainty surrounding the Budget.
“While Halloween may support impulse grocery sales in the short term, food businesses’ attention will be firmly on the Budget and what it could mean for consumer spending power, business costs and demand heading into 2027,” she said.