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Sandra Halliday Published
September 8, 2025
The latest BDO high street sales tracker may have reported higher sales for August (in fact “the best total like-for-like sales growth since March”), but given that the comparison was with a weak performance in 2025 and the figure also lagged inflation, there’s little to celebrate.
Total like-for-likes grew by 3.8% across the month, but factoring in the rate of inflation, “these figures suggest a fairly significant decline in sales volumes”.
BDO also said that “with business confidence declining and investment tightening, this may well increase the sense of ‘doom and gloom’ among retailers going into the crucial autumn and winter trading period”.
The accountancy and business advisory firm also said online sales grew just 2.8%, “barely offsetting last year’s decline”.
That said, in-store like-for-likes were up by 9.4% compared to August 2025, another sign of how physical retail has regained some of its buzz.
Yet the reverse was the case for the fashion sector specifically. Fashion sales grew by 4.3% in total, which beat the overall rate but also trailed the inflation figure. And its growth was driven by online with in-store sales up a small 2.8%.
Sophie Michael, Head of Retail and Wholesale at BDO LLP, said: “Although these figures may seem positive, they compare to a very weak period in August 2025, when the retail sector recorded its worst growth since the end of Covid-19 restrictions. These results show the sector is failing to shake off sluggish growth rates.
“Positive economic news such as falling inflation and rising wages may have buoyed consumer confidence and explain some of the growth we’ve seen, particularly in the lifestyle category. [But] the period from now through to Christmas is the critical trading period for retailers, and these results certainly don’t give them much cause for optimism as they approach the so-called Golden Quarter.”