Report Summary

Period covered 02 August – 29 August 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Homewares sales

Homewares sales rose by xx% year-on-year in August, below the xx% increase recorded in the same month last year.

Growth improved slightly from xx% in July, but the category remained well behind the xx% increase recorded across retail, extending a relatively subdued period for spending on the home.

The contrast with some of the stronger categories remained pronounced, particularly after a summer in which consumer spending had been drawn towards food and drink, health and beauty and other purchases associated with warm weather.

Homewares received little comparable benefit, with consumers having fewer immediate reasons to bring purchases forward.

Key trading highlights

Summer weather: August's weather was again unusually warm, including another heatwave during the middle of the month, but the benefit for homewares was limited compared with categories more directly linked to the summer. After exceptionally warm conditions through May and June, households had already had several months in which outdoor living and seasonal purchases could take priority, leaving homewares competing for spending after a prolonged period of summer activity.

Back-to-school: The move towards back-to-school during the second half of August provided some change in the trading pattern as households prepared for September, but it was not enough to produce a substantial acceleration across the category.

Housing activity remain weak: Conditions in the housing market remained another important influence. Mortgage approvals fell to 56,100 in July, their lowest level since January 2024 and around xx% below a year earlier.

Mortgage costs also remained high, with the effective rate on newly drawn mortgages reaching xx% in July.

Household budget under pressure: Household finances became less favourable at the same time, as CPI inflation increased to 3.1% in August and regular wage growth slowed to xx%. Another increase in the energy price cap is due in October, adding to the essential costs households will face as they head into autumn.

Consumer behaviour

Homewares sits between everyday retail and the much larger financial commitment involved in furniture and flooring, which means purchases range from relatively inexpensive decorative items and kitchenware through to higher-value household products.

August's xx% growth indicates consumers were not increasing their expenditure at anything close to the rate seen across the strongest parts of retail.

The category also lacks some of the regular purchasing occasions that support areas such as food and health and beauty. Replacement purchases will always provide a degree of demand, but discretionary spending on decoration and other non-essential household products can be delayed when consumers have other calls on their income.

Take out a FREE 30 day membership trial to read the full report.

Consumer confidence improved