Total retail sales in the UK saw a year-on-year (YoY) increase of 2.5% in July 2025, surpassing the 12-month average growth of 1.9%, according to data from the British Retail Consortium (BRC)-KPMG Retail Sales Monitor.
This rise is a significant improvement compared to the 0.5% growth recorded in July last year.
Go deeper with GlobalData
Food sales experienced an increase of 3.9% YoY, which is higher than the 12-month average growth of 3.2%.
BRC chief executive Helen Dickinson stated: “Food sales did well in early July thanks to warm weather and a packed sporting schedule, though this momentum failed to hold for the rest of the month. Rising food inflation meant increased spending was more a result of higher prices than improved demand.”
Non-food sales also saw an uplift, with a 1.4% year-on-year increase, marking a turnaround from the 1.8% decline in the same month of 2024. This growth exceeded the 12-month average of 0.8%.
In-store non-food sales were up 1.9% YoY, a recovery from the 3% decline in July of the previous year.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDickinson said: “Fashion sold well early in the month, but deteriorated as weather worsened, while homeware and indoor furniture grew steadily, recovering from the previous year’s decline. Gaming and toys sold particularly well, as nostalgic adults purchased products like Lego.
“With sales growth at these levels, it is barely touching the sides of covering the £7bn new costs imposed on retailers at the last budget.”
Dickinson stated that if the Autumn Budget imposes additional taxes on retailers, numerous businesses may face tough decisions regarding the sustainability of stores and employment.
Persistent fiscal strain could also lead to increased pricing, resulting in greater hardship for families, especially those earning less, a downturn in consumer expenditure and a hindrance to economic advancement.
Online non-food sales showed a marginal increase of 0.3% YoY, falling below the 12-month average growth of 1.9%.
The online penetration rate for non-food items dropped to 34.8% in July from 35.1% in the same month of 2024 also below the 12-month average of 36.7%.
KPMG UK consumer, retail and leisure head Linda Ellett stated: “The UK’s fifth warmest July on Met Office record brought a boost to home appliance and food and drink sales. But rising inflation was also a driver of the latter and monthly non-food sales are only growing at around 1% on average at present.”
“With employment costs having risen and inflation both a business and consumer side pressure, it remains a challenging trading environment for many retailers.”
In early August 2025, the BRC highlighted that the UK total retail footfall had dropped by 0.4% in July for the second consecutive year.
