UK retail sales volumes fell by 0.5% in July 2026, ending two months of growth following a 0.7% rise in June and a 1.3% increase in May [1, 2, 3]. Annual retail sales growth slowed to 1.6% in July, down from a downward revision of 3.8% earlier [1, 3].
The largest fall in July came from non-food stores, particularly clothing and footwear, which declined about 2.7% month-on-month [1, 2, 3]. Retailers had brought forward summer sales promotions into June, contributing to the sharper drop in clothing sales the following month [1, 2, 3]. Furniture sales also weakened as households avoided changing decor during the heatwave [2].
Despite the July setback, total retail sales volumes remained only 0.1% below the pre-pandemic levels of February 2020 [3]. The overall quantity of goods bought rose by 1.1% in the three months to July compared with the previous three-month period [3].
The hot weather and the men’s football World Cup earlier in June and July boosted demand for food, drinks, fans, and air conditioners [1, 2]. However, hospitality venues like pubs and sports bars gained most from the World Cup, with 30 million extra pints poured and an estimated £150 million in additional sales revenue as many consumers watched matches there rather than shopping [2]. "Retail was not a World Cup winner, with many opting to cheer on England from the pub and prioritising their summer getaway, boosting hospitality and travel rather than retail sales," said Jacqui Baker, head of retail at RSM UK [2].
Martin Beck, chief economist at WPI Strategy, said, "July's 0.5% fall in UK retail sales volumes should probably be read as a pause rather than the start of a renewed consumer downturn" [1]. Consumer sentiment remained relatively robust despite higher energy costs linked to the US-Iran war [1]. Sandra Prince of Lloyds noted, "Hotter days could have shifted footfall and spending online or towards retail parks. For retailers, as the summer peak slows down, attention is now turning to the opportunities the autumn could bring to keep consumers engaged." [2]
GfK consumer confidence reached a two-year high in early August, suggesting improving sentiment as the sector moves out of summer [1].
