Retail sales sink to seven-year low in September as consumers ‘rein in’ spending

The month of September, which often provides a sales uplift for retailers ahead of the important pre-Christmas months of trading ahead, saw the weakest total discretionary retail sales in seven years, excluding the pandemic period.

Total like-for-like sales across the discretionary retail categories were down by 0.3%, marking the weakest September since 2019. That compared with growth of 3.1% in September 2025, according to the latest data from BDO’s High Street Sales Tracker.

Online sales performed particularly poorly, falling 1.1% compared to growth of 3.1% in September 2025, marking the weakest September ever recorded (again excluding the pandemic).

Traditionally, September benefits from a seasonal boost by back-to-school spending and shoppers refreshing their wardrobes for autumn. However, neither trend provided the usual uplift this year, with total sales growth for the month remaining consistently below 2025 levels.
The data reflects the mounting pressure on the consumer purse and discretionary spending as retailers head into the all-important Golden Quarter.
It also comes as the first Autumn Budget from Chancellor John Healey approaches, set to be delivered on 28 October, with accountancy and business advisory firm BDO calling on help for retailers.

Sophie Michael, Head of Retail and Wholesale at BDO, said: “These results are deeply concerning and come at the worst possible time for retailers. September should act as a springboard into the crucial final months of the year, but instead we’re seeing consumers rein in discretionary spending. The fact that even online sales have fallen shows just how difficult the trading environment is.

“Retailers are facing pressure on multiple fronts. Costs of employment, supply chain and energy continue to rise and many will be apprehensive about further business rate rises announced in the Budget.

“Households are facing another winter of greater financial strain as energy bills bite and look set to rise further. Extreme weather across the globe is also expected to place further pressure on food prices in the months ahead, inevitably taking a larger proportion of consumer spend.

“The retail sector is entering the most important trading period of the year from an exceptionally fragile position. Retailers desperately need consumers to loosen the purse strings this Christmas but are having to make difficult decisions on stock levels, staffing and investment without visibility of whether consumer demand will materialise. Recent CBI data reports that retailers are cutting order volumes at the fastest rate since its Distributive Trades Survey began in 1983.

“While businesses will need to continue to manage margins incredibly carefully, there is only so much they can absorb before passing costs onto the consumer.

“The Autumn Budget presents a critical opportunity for the Government to support this struggling sector. Retailers urgently need measures that ease the growing cost burden and give businesses the confidence to invest. Without meaningful support, there is a real risk that more retailers simply won’t be able to withstand the challenges ahead.”