UK retail sales enjoyed a welcome boost in October, recording their strongest monthly growth since January 2025.
Total like-for-like sales across all retail categories increased by 4.6% during the four weeks to 25 October 2026, compared with a marginal decline of 0.02% in the same month last year.
This is according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO, which also reported that store-based sales rose by 2.2%, ahead of the 1.1% growth recorded in October 2025, while non-store sales delivered a particularly strong performance, increasing by 10.1% year on year.
The strong performance also made October the best month for UK retailers since 2021, when total store and non-store sales growth reached 19.9%. It was the second-best October for retail sales growth in the past decade.
Homewares sector sees 8% sales increase
The homewares sector recorded encouraging growth this month, with like-for-like sales increasing by 8% compared with the same month last year.
Week by week, the sector experienced a challenging start to October but trading improved considerably as the month progressed. Non-store sales soared by 56.5% in the second week, while store-based sales reached their strongest weekly growth of the month in week three, at 9.95%.
Online, BDO highlighted the significant contribution of non-store sales to October’s overall retail performance, with online growth considerably outstripping that recorded by physical stores. The tracker noted that the month began with unusually warm weather before becoming more autumnal, with storms affecting parts of the country during the final week. This may have encouraged some shoppers to purchase online rather than visit the high street.
However, the wider economic backdrop remains challenging for retailers. Consumer confidence fell sharply this month, with the GfK Consumer Confidence Index dropping 11 points to -24. This was its lowest monthly reading of the year, apart from April, and the sharpest monthly decline since April 2020.
BDO warned that the outlook remains uncertain as the industry approaches the crucial Golden Quarter. Its report concluded that attention will now turn to whether forthcoming Budget measures, including those relating to business rates, employment costs and cost-of-living support, will help offset the challenging economic environment.
