September 2026 sees weakest UK retail performance since 2019

UK discretionary retail sales recorded their weakest September performance since 2019, excluding the pandemic period, according to new figures from accountancy and business advisory firm BDO.

Data from BDO’s High Street Sales Tracker showed total like-for-like (LFL) discretionary retail sales declined -0.3 percent in September 2026, compared to growth of +3.1 percent in September 2025. Non-store sales dropped -1.1 percent over the same period, down from a +3.1 percent rise last year, representing the lowest September non-store LFL sales figure outside the pandemic era.

Consumers pull back on discretionary spending

September typically benefits from back-to-school purchases and autumn/winter collection updates. However, seasonal demand failed to materialise this year, with overall sales growth remaining below 2025 levels throughout the month. The slowdown points to rising pressure on consumer budgets ahead of the critical Golden Quarter.

BDO head of retail and wholesale Sophie Michael noted that the contraction comes at an inconvenient moment for the sector.

“These results are deeply concerning and come at the worst possible time for retailers,” Michael said. “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.”

Cost burdens press on profit margins

Retailers face ongoing margin pressures from employment, supply chain, and energy costs. Businesses are also bracing for potential business rate adjustments in the upcoming Autumn Budget. Meanwhile, rising household energy bills and food price inflation driven by global weather events continue to squeeze consumer discretionary spending power.

The broader operational picture remains constrained. Data from the Confederation of British Industry (CBI) Distributive Trades Survey for September 2026 indicates that retailers cut order volumes at the fastest rate since the survey was established in 1983.

“The retail sector is entering the most important trading period of the year from an exceptionally fragile position,” Michael stated. “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.”

Michael added that while companies continue to manage margins carefully, cost absorption limits are being reached.

“The Autumn Budget presents a critical opportunity for the Government to support this struggling sector,” Michael said. “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.”