UK retail sales rose 4.1% in August, up 3.1% from the previous year, according to the British Retail Consortium sales monitor.
However, the figures do not take into account inflation, with the BRC noting that the rise in sales likely masked a drop in volumes once CPI is accounted for.
The increase was carried by food sales, which rose 8.2% over the three months to 31 August. This was marginally above the 12 month average of 8%.
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Meanwhile, non-food sales decreased 0.2% over the three months to August. This is below the 12-month average growth of 0.9%. For the month of August, non-food was in growth year-on-year.
Victoria Scholar, Interactive Investor head of investment, said: “Health and beauty, food and drinks products enjoyed a boost over the summer, while clothing and footwear suffered weaker growth with families leaving it longer to stock up on school uniforms.
“These figures are not adjusted for inflation suggesting that price increases rather than greater volumes could be responsible for the acceleration. Therefore, as inflation cools, retail sales could also retreat as the weather cools and energy bills rise, particularly during the lull between now and the all-important Christmas shopping season.”
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Helen Dickinson, chief executive of the BRC, said: “”The sales figures reflected the improvement in consumer confidence in August, and retailers hope this general upwards trend will carry on. Not all areas benefitted, clothing and footwear saw weaker growth as families held back spending on children’s uniforms and other back-to-school goods until the last minute.
“Easing inflation will certainly be welcomed by consumers, but as the rate of price rises falls, so will the extra spending needed by consumers. As a result, sales growth may fall in the coming months, even if volume growth does not.
“Furthermore, high interest rates and high winter energy bills will put pressure on many households to spend cautiously. Retailers are combatting this through a clear focus on great value for consumers, expanding budget ranges, and finding ways to cut costs where possible.”
Despite increased consumer confidence over the summer, Paul Martin, head of UK retail at KPMG, warned that the resilience of the sector may not last.
He said: “Having survived the pandemic and continuing to battle through the cost-of-living crisis, we are already starting to see the resilience of the sector begin to fade and high street casualties are starting to emerge. Maintaining consumer confidence as we head into the golden quarter will be absolutely vital for some in the sector, who will need a good Christmas in order to continue trading in 2024.”
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