UK retail sales drop in August yet clothing stores charge ahead

Retail sales across the UK fell marginally throughout August, as cost pressures weighed on consumer spending. Despite this, textile and clothing retailers welcomed stronger performance thanks to various events and the ‘back to school’ season.

According to figures from the Office for National Statistics (ONS), retail sales dropped by 0.1 percent in the three months to August 2025 compared with the three months to May 2025. On a monthly basis, sales volumes rose 0.5 percent during the month, akin to the increase reported in July.

Clothing stores helped offset results, contributing to a 1.1 percent increase in overall sales volumes for the non-food stores category, which also includes department stores. Clothing stores themselves saw sales volumes rise 1.3 percent in August, and 2.2 percent over the past three months.

In a statement, head of retail at RSM UK, Jacqui Baker, said the uptick in clothing, footwear and department store sales could be attributed to the ‘back to school’ period and the ‘lipstick effect’, which “continues to drive sales as consumers are prioritising essentials and smaller, more affordable purchases rather than big ticket items due to the continued squeeze on budgets”.

Baker added: “The sold out Oasis reunion tour also contributed to this month’s uplift - giving a boost to clothing sales. However, cost pressures on households are clear to see, with people cutting back on spend or trading down, and in some cases opting for second hand goods or pre-loved uniform.”