In the three months to August, the growth of 1.2% was even larger than the previous period, according to the Office for National Statistics (ONS).
It marks a brighter time for UK retailers, following a 0.7% increase in retail sales volumes in July. That figure was revised by the ONS after initially estimating a slightly smaller 0.5% increase for the month.
Compared to the same time last year, sales volumes rose by 2.5% – the largest annual increase since February 2022.
Non-food store sales also saw a slight boost, with sales increasing by 0.6%, which the ONS noted was largely because of clothing sales.
Shoppers eager to catch an end-of-season bargain for themselves while buying uniforms and new clothes for kids heading back to school contributed to a 2.9% surge in sales in clothing and footwear stores.
Food stores also felt a welcome rise, with sales rising by 1.8% for the month, due to higher-than-average temperatures for August after a summer of grey skies. With the sun finally making a sustained appearance, many shoppers dashed to supermarkets to fill their trolleys with all the BBQ essentials.
The growth dwarfs the levels of August 2023, where sales rose by just 0.6%, which makes this the biggest yearly boost since July 2021.
Away from the high street, the amount spent online was unmoved at 0%, but this was a huge 4.3% surge on last year’s levels.
Overall, the total spend of the combined online and in-store sales grew by 0.4% in August.
‘Happiness tends to impact spending habits’
Danni Hewson, AJ Bell’s head of financial analysis, said: “It’s no secret that people feel happier when the sun shines and that happiness tends to impact their spending habits. Warm summer evenings are the perfect backdrop for a BBQ with friends and family, requiring a quick trip to the supermarket to stock up on burgers, buns and beer.
“Food sales provided a substantial boost to retailers in August with fragile consumer confidence enjoying a rate cut hug, which offset some of the political messaging that’s since eroded some positivity.
“Ever since lockdowns blighted people’s lives, they have put experiences ahead of stuff and food often plays a vital role in creating those memorable events that will be cherished as nights draw in and summer excesses fade into memory.”
Last month, Prime Minister Keir Starmer warned households to be braced for a “painful” Autumn Statement and Hewson questioned whether July and August’s positive sales could be a flash in the pan.
“Consumers are still being prudent; they know energy prices are set to rise in the autumn and they’re nervous about what the new Government’s budget might have in store. Cooling inflation has helped persuade people to spend a little more, delivering sales volumes at the highest levels in two years. The question is: How long can this positive momentum last?
“September has enjoyed a similarly decent spell of good weather, but the latest GfK consumer confidence survey suggests a bone deep chill settling into the consumer psyche. We’ve taken to heart warnings that things will get worse before they get better, but the upcoming Budget needs to show the path to positivity isn’t completely riven with potholes.”
