At a glance

Online sales in the UK increased by 2.5% in August, recovering from a decline in July, with e-commerce now accounting for 28.8% of total retail spending. Parcelhero attributes July's dip to previous promotions and a heatwave, suggesting that online retail's long-term growth remains strong. The rise in online spending is significant as it outpaced overall retail growth, indicating a continued shift towards e-commerce, especially as rising fuel prices make online shopping more appealing.

Online sales values rose 2.5% in August and non-store retail volumes grew 1.7%, recovering more than half of July’s slump, with online spending now 8.9% higher than a year ago. Parcelhero says July’s dip was a hangover from June’s heatwave and promotions, not a sign of e-commerce losing momentum.  

An analysis of the latest Office for National Statistics (ONS) retail sales bulletin shows that e-commerce rebounded strongly in August, following a big dip in July. The home delivery expert Parcelhero says the data confirms that online retail’s long-term growth is firmly on track, despite a bumpy summer.

Online spending values rose by 2.5% in August, rebounding from a 4.2% fall in July. Online sales were 8.9% higher than in August 2025. Across the three months to August, online spending rose 1.9% compared with the previous three months, and was up 10.1% on the same period a year earlier.

Parcelhero’s Head of Consumer Research, David Jinks MILT, says: ‘Online sales outpaced retail as a whole. E-commerce’s 2.5% growth in August was almost twice the 1.3% rise in total spend across stores and online. As a result, the proportion of sales made online increased from 28.4% in July to 28.8%.

‘The volume of goods sold by non-store retailers, which are mainly online retailers, rose by 1.7% in August, a partial recovery from their July fall. Retailers believe July’s weaker sales were down to promotions that pulled spending forward into June. A number of non-store retailers also say August trading was strong in its own right. Over the three months to August, non-store sales volumes rose by 5.4%. The rise was helped by an exceptional June, when hot weather drove sales of fans and air conditioning units, alongside sports merchandise and clothing.

‘July’s figures had some people asking whether online shopping had run out of steam. August has answered that question. Given the healthy 2.5% rise in online sales values, July’s dip looks like simply the morning after a very big night. June’s heatwave, early summer promotions and the start of the World Cup meant many shoppers had already done their buying. Once that effect wore off, online spending bounced straight back.

‘Of course, what matters most is the long-term picture, and that is very positive for e-commerce. Online sales values in the three months to August were more than 10% higher than a year earlier, and almost 29p of every pound spent in retail now goes online. That is a remarkable figure, and it keeps rising.

‘The ONS also reports that fuel sales fell in August as pump prices rose sharply, and that some drivers are only partly filling their tanks. That could strengthen the move to online shopping.

‘When filling up the car gets more expensive, a trip to an out-of-town retail park becomes less appealing. Many consumers will look to home delivery instead. With the key autumn sales events and the Christmas peak ahead, retailers need to make sure their delivery options are fast, affordable and reliable. August shows that shoppers are ready to spend online, as long as the service meets their expectations.’

‘Overall, the ONS estimates that retail sales volumes rose 0.5% in August, after a 0.5% fall in July. Volumes rose 0.9% over the three months to August.

‘E-commerce is continuing to change the retail landscape, and its impact is increasing every month. Parcelhero’s latest industry report, “Delivering the Future”, reveals how the way we order and receive goods will change between now and 2030, and what e-commerce might look like by 2060 and beyond. The full report is available at https://www.parcelhero.com/en-gb/resources/ebooks/delivering-the-future

Editorial insight

August’s rebound in online retail sales follows a volatile summer for the sector, with the latest ONS data indicating that July’s decline was more a result of short-term factors than any underlying weakness in e-commerce demand. The improvement in online spending comes amid a wider recovery in retail activity, but e-commerce continues to outpace the overall market, increasing its share of total sales.

For retailers, the figures underline the importance of maintaining robust online operations ahead of the crucial autumn and Christmas trading periods. With rising fuel prices potentially discouraging trips to physical stores, the focus is likely to remain on home delivery and digital engagement. The data suggests that online shopping remains a resilient and growing channel, even as consumer behaviour fluctuates in response to external events and seasonal trends.

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