Retail sales in the United Kingdom experienced a slight decline in September compared to the same month last year, according to data from accountancy firm BDO. The firm’s high street sales tracker, which measures fashion, lifestyle, and homeware sales across physical stores and online platforms, recorded a 0.3 percent overall decrease in like-for-like retail sales.
Online sales also fell, dropping 1.1 percent compared with September 2025. This downturn comes despite September traditionally benefiting from back-to-school spending, which typically boosts retail figures. Last year, like-for-like sales grew by 3.1 percent during the same period, highlighting a reversal in momentum.
BDO described the results as “deeply concerning,” noting that this marks the weakest discretionary spending in seven years. The persistent decline throughout 2026 is reflected in seven consecutive months of falling like-for-like sales volumes year-on-year. Retailers have responded by reducing order volumes at the fastest pace seen in over four decades, driven by diminished consumer demand.
Sophie Michael, a representative from BDO, emphasized the challenges facing retailers, pointing out that the decrease in online sales suggests the broader trading environment has become increasingly difficult. The firm warned that businesses in the sector may struggle to navigate the upcoming end-of-year period, which is typically crucial for revenue generation.
BDO called for governmental intervention in the forthcoming budget to alleviate the financial pressures on retailers. Without support, the firm cautioned, many retailers could find themselves unable to withstand the mounting economic headwinds heading into the crucial holiday sales season.
