UK retail sales grow in October driven by online shopping

UK retail sales in discretionary categories, including fashion, lifestyle, and homewares, grew by 4.6 percent year on year in October. According to the High Street Sales Tracker from BDO, this represents the strongest growth recorded since January 2025.

The increase was largely driven by a drop in temperatures, which encouraged consumers to purchase autumn and winter clothing. However, a significant divide emerged between shopping methods: online sales rose by 10.1 percent, while physical high street sales grew by only 2.2 percent. In the fashion sector specifically, online sales increased by 9 percent compared to a 2.1 percent rise in-store.

This performance marks only the third month in 2026 where retail sales growth has outpaced inflation. While the results provide a boost heading into the Golden Quarter, analysts note that consumer confidence remains fragile and underlying trading conditions continue to be difficult.