UK Retail Sales Fall 0.4% in September Despite Growth Across the Third Quarter

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Pedestrians on Glasgow's Buchanan Street, used illustratively for UK retail-sales coverage

London — October 24, 2026. Retail sales volumes in Great Britain fell by 0.4 per cent in September, reversing part of August’s increase and signalling that consumer spending remained uneven even as the wider third quarter recorded growth.

The Office for National Statistics (ONS) published the figures on October 23. It estimated that the quantity of goods bought by consumers fell 0.4 per cent over the month after a revised 0.7 per cent rise in August. September sales volumes were still 0.8 per cent higher than a year earlier.

The quarterly picture is stronger than the monthly one

For July to September, retail sales volumes rose 0.7 per cent compared with the previous quarter and were 1.5 per cent higher than in the same quarter of 2025. The difference matters: monthly data can move sharply with weather, promotions and timing, while the three-month comparison provides a broader view of the trend.

The ONS said the September decline included lower sales at supermarkets and non-store retailers. Online clothing sellers reported that warm weather affected demand for autumn and winter ranges. Non-food store volumes also fell 0.4 per cent on the month, with clothing, footwear, sports equipment and household-goods retailers among the weaker areas.

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Online sales and household choices

The value of online sales fell 0.4 per cent in September after a stronger August, but remained 6.8 per cent above September 2025. Online sales represented 28.8 per cent of total retail sales, down slightly from 28.9 per cent in August. That suggests online spending remains a major part of the retail market even as monthly growth fluctuates.

Retailers’ explanations point to a mixture of seasonal and demand-related influences. Warm conditions can delay purchases of coats and other winter items; lower footfall and customers cutting back can also affect stores. The ONS cautions that month-to-month movements are volatile and should be considered alongside the three-month trend.

Why markets watch retail data

Retail sales are an indicator of household demand, which feeds into assessments of economic growth and inflation. A monthly decline may raise questions about consumer momentum, but the quarterly increase means the latest release does not show a broad-based collapse in spending. The figures alone also do not establish why every household changed its purchases or predict the next interest-rate decision.

Investors and policymakers will compare the retail data with inflation, wage growth, employment and business surveys to judge whether households are gaining purchasing power or becoming more cautious. The next ONS retail sales release is scheduled for November 20, 2026, when September’s initial estimate may be revised and October’s data will be available.

What to watch next

The key indicators are whether sales volumes recover in October, whether seasonal clothing demand normalises as temperatures change, and how online and in-store spending develop ahead of the holiday shopping period. For retailers, the figures reinforce the need to distinguish a temporary weather effect from a lasting change in demand.

Sources and documents

These are ONS estimates published October 23, 2026; monthly figures can be revised as more data become available.

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