UK retail sales growth remained subdued in September, with consumers continuing to rein in spending ahead of the Budget and anticipated increases in household bills and taxes.
This is according to the latest figures from the British Retail Consortium (BRC) and KPMG which reported that total retail sales increased by 1.3% year on year in September, down from growth of 2.3% a year earlier and below the 12-month average of 1.5%.
The figures, covering the five weeks from 30 August to 3 October 2026, point to continued pressure on discretionary spending, with potential implications for electrical retailers as consumers weigh up the timing of larger household purchases.
Non-food sales grew by just 0.3% year on year. In-store non-food sales increased by 0.1%, while online non-food sales rose by 0.7%, falling short of their 12-month average growth of 1.3%.
Online shopping continued to account for a growing proportion of non-food purchases, with the online penetration rate reaching 38.3% in September, up from 37.9% a year earlier.
The household appliances sector fared well online, showing growth against last month, and it’s well ahead of the 12-month average.
Helen Dickinson, Chief Executive of the BRC, warned that further increases in business rates could put additional pressure on prices, reduce high street investment and threaten jobs, and she urged the Government to use the upcoming Budget to support retail investment and growth.
Linda Ellett, UK Head of Consumer, Retail and Leisure at KPMG, said the figures pointed to consumers becoming increasingly selective about where they spend their money…
“Non-food sales were essentially flat and have declined slightly across the last three months. Shoppers appear to be prioritising certain categories while postponing purchases elsewhere, creating a challenging environment for retailers as the Golden Quarter approaches.”
Ms Ellett added that if some of the recent weakness reflected delayed rather than lost demand, retailers could still unlock additional spending during the months ahead, particularly with Black Friday just round the corner, as shoppers look for competitive prices on higher-value household products.
