Health and Beauty Sales Surge in September as Retail Growth Slows
Health and beauty sales recorded their strongest month of the year in September, rising 4% year-on-year. This bright spot for retailers came as overall UK retail sales growth slowed to 1.3%.
Spending at pharmacy, health and beauty retailers increased by 4% year-on-year in September. This surge in health and beauty sales provided a rare highlight as broader UK retail growth showed signs of slowing.
Total UK retail sales increased by 1.3% year on year in September. The 12-month average for UK retail sales growth is 1.5%. The figures reveal a mixed performance across different retail categories.
Retail sector shows mixed performance
While food and drink specialists saw strong growth, non-food sales remained weak. Spending at food and drink specialist stores rose by 6.3% year-on-year in September. Food sales rose by 2.5% year on year.
Non-food sales grew by a modest 0.3% year on year. Clothing and footwear had a weak month due to unseasonably warm weather weakening demand. Back-to-school spending provided some support. Non-essential spending increased by 1.8% year on year. Fuel spending rose sharply by 17.3% year on year.
Industry calls for tax relief ahead of Budget
Retailers urged Chancellor John Healey to avoid a warehouse tax and exempt high street businesses from the highest business rates multiplier. This call comes ahead of the Autumn Budget on 28 October. The British Retail Consortium (BRC) found retailers faced an effective tax rate of 71.5% in 2025/26, the highest of 11 sectors analysed.
Helen Dickinson, Chief Executive of the BRC, said: "The Chancellor cannot promise to ease the cost of living while piling more costs onto the retailers working to keep prices down." The BRC has called on the Government to address business costs.
Data sources and context
The figures come from the BRC and KPMG’s Retail Sales Monitor, with Barclays providing separate data on health and beauty and card spending. Overall card spending increased by 2% year on year in September. Linda Ellett is UK Head of Consumer, Retail & Leisure at KPMG. Jack Meaning is Chief UK Economist at Barclays.
The BRC represents major retailers including Tesco, Sainsbury’s and Marks and Spencer. At the time of the report, the Black Friday promotional period was approaching.
External factors influencing trends
Unseasonably warm weather weakened clothing and footwear demand. Fashion sales were weighed down by prolonged summer temperatures delaying autumn/winter wardrobe switches. Conversely, Pokemon’s 30th anniversary products, including branded trading cards, boosted toy sales in September 2025.
Halloween may support impulse grocery sales in the short term. Food businesses’ attention will be on the Budget and its impact on consumer spending power and demand heading into 2027. Spending at pharmacy, health and beauty retailers increased by 4% year-on-year in September.
