Hot weather and women’s Euro 2025 buoys retail sales in July

Sales at UK retailers increased in July as shops were buoyed by good weather and the women’s Euro 2025 tournament.

The Office for National Statistics (ONS) said the total volume of retail sales is estimated to have risen by 0.6% in July.

This was stronger than the 0.3% some analysts had pencilled in for the month.

Online shops helped drive the uplift, with retailers citing sunny summer weather, new product ranges and the football tournament attracting more shoppers.

Sales volumes for non-store retailers – which mainly includes online shops, but also retailers such as stalls and markets – rose by 2.5% in July, to reach the highest level since February 2022, the ONS said.

Clothing and footwear spending rose strongly during the month, while furniture and electronics also jumped.

However, overall retail sales declined by 0.6% in the three months to July, when compared with the three months to April.

Food spending has been falling in recent months, as shoppers face rising prices in supermarkets amid persistent inflation.

Cande Cooper, retail partner at Deloitte, said: “Retail sales volumes grew month-on-month in July, with the hot weather and a host of sporting and cultural events encouraging consumers to spend.

“While inflation persists, particularly in food, we are seeing consumers prioritising small luxuries such as clothing and beauty, as well as spending on experiences.”

But she said retailers should focus on “offering competitive pricing and focusing on value” with consumer spending set to slow over the third quarter.

Kris Hamer, director of insight at the British Retail Consortium (BRC), said: “July was a good month for retail sales, as the warm, sunny weather and packed sporting schedule in the first half of the month got people spending, especially for alcoholic beverages as people came together.”

But he said the level of sales growth “makes little dent on the £7 billion of new costs that retailers are having to shoulder following last year’s budget”, according to the BRC’s estimates.

The latest release from the ONS was delayed after the statisticians identified an issue with how it aligns its data with calendar months.

The review has resulted in revisions to previous retail sales data, including to most months over the past year.

James Benford, ONS director general of economic statistics, said: “Overall, retail sales were a little lower over the latest three months as a whole compared to the previous three.

“Supermarkets, sports shops and household goods stores had a strong start to the year, but spending there has fallen since March.

“That weakness was partially offset by the strong showing from online and clothing and footwear stores.”

Mr Benford added: “I apologise for the delay to this release and for the errors in how we have been seasonally adjusting these data.”

The errors resulted in previous figures “overstating the monthly volatility in retail sales” over the first half of 2025, he said.

June’s retail sales data has been revised to a 0.3% increase, down from the previous 0.9%.