UK retail sales growth slowed in July as prolonged hot weather weighed on physical stores, while consumer spending remained concentrated on food, summer clothing and other seasonal purchases.
Total UK retail sales increased 1.3% year on year during the four weeks from 5 July to 1 August, according to the latest BRC-KPMG Retail Sales Monitor. Growth was down from 2.5% in July 2025 and below the 12-month average of 1.8%.
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The figures show contrasting trends across the UK retail market. Food sales benefited from England’s progress in the World Cup and spending on home entertaining, while non-food retailers faced weaker store sales and continued caution around larger discretionary purchases.
Online non-food sales outperformed physical stores, rising 1.3% year on year as in-store non-food sales fell 1.9%.
The July figures followed a stronger month for retail in separate Office for National Statistics (ONS) data. Great Britain retail sales volumes rose 1% month on month and 4.2% year on year in June, when retailers reported that warm weather and promotions supported demand for clothing and non-store purchases.
Heatwave hits non-food sales
Non-food sales fell 0.7% year on year in July, compared with 1.4% growth a year earlier. The result was also below the category’s 12-month average growth of 0.4%.
Physical stores came under particular pressure. In-store non-food sales declined 1.9% year on year, reversing the 1.9% increase recorded in July 2025.
British Retail Consortium chief executive Helen Dickinson said lower footfall during the hot weather weighed on non-food sales.
Clothing proved more resilient as consumers bought affordable summer products, while footwear performed less strongly. Lower-cost discretionary categories, including beauty products and fashion jewellery, also benefited from demand for smaller purchases.
Higher-value categories faced greater pressure, with Dickinson saying consumers were delaying “bigger-ticket purchases including furniture and computing”.
The figures point to a consumer market in which seasonal and relatively affordable purchases remained more resilient than products that households could postpone.
The July performance followed stronger demand for some weather-related categories a month earlier. ONS data for June showed retailers reporting increased sales of clothing, outdoor goods, fans and air-conditioning products, alongside higher promotional activity.
The BRC-KPMG and ONS measures differ: the former tracks the value of sales reported by participating retailers, while the latter measures retail sales volumes across Great Britain.
Online sales outperform stores
The gap between online and physical retail was particularly clear in non-food during July.
Online non-food sales increased 1.3% year on year, accelerating from growth of 0.3% in July 2025. However, the latest increase remained below the 12-month average growth rate of 1.6%.
Online purchases accounted for 35.9% of non-food sales, compared with 35.4% a year earlier. The share remained below its 12-month average of 38%.
The figures show how hot weather affected retail channels differently. While seasonal demand supported selected categories, physical non-food stores experienced weaker sales as footfall declined.
KPMG UK head of consumer, retail and leisure Linda Ellett said the extended summer continued to support demand for clothes, shoes and accessories after seasonal purchasing started early in May.
“The prolonged warm weather has also aided home entertaining and garden-related purchases,” Ellett said.
The gains were not spread evenly across non-food retail, however, with other categories recording weaker performances.
For multichannel retailers, the figures underline the importance of channel flexibility when weather conditions influence where consumers choose to shop.
Food sales gain from World Cup
Food was the strongest major retail category in July.
Food sales increased 3.8% year on year, only marginally below the 3.9% recorded in July 2025 and ahead of the 12-month average growth rate of 3.4%.
England’s progress in the World Cup provided an additional spending occasion, supporting purchases for home viewing and entertaining.
IGD chief executive Sarah Bradbury said shopper confidence improved in July, supported by easing inflation, warm weather and England’s World Cup run.
However, she said “value continues to play a central role in purchasing decisions” as households remained focused on managing their spending.
Broader consumer sentiment also improved during July. The GfK Consumer Confidence Index rose six points to -17, its largest monthly increase since November 2023. Despite the improvement, the index remained negative, pointing to continued caution among consumers.
The retail sales figures reflect that uneven picture. Consumers continued to spend on food, seasonal clothing, beauty products and other relatively affordable purchases, while demand for furniture, computers and other higher-value goods remained subdued.
Dickinson said household budgets remained stretched and described consumer confidence as fragile.
For retailers, the challenge will be to convert improving consumer confidence into broader discretionary spending while managing increasingly uneven demand across categories and channels.
