Story Highlight
– UK retail sales rose 1.3% year on year in July.
– Non-food sales fell by 0.7% amid changing shopping habits.
– Clothing sales increased as shoppers sought affordable essentials.
– Consumer confidence improved but budget sensitivity remains high.
– Retailers face challenges from rising costs and economic pressures.
Full Story
Retail sales in the UK experienced a 1.3% year-on-year increase in July, as reported by the latest figures from the British Retail Consortium (BRC). However, non-food sales saw a decline of 0.7%, contrasting with a growth of 1.4% recorded in the same month last year.
The proportion of non-food sales made online rose slightly to 35.9%, compared to 35.4% in July 2022, though it remains below the average of 38% from the past year.
Among non-food items, clothing performed notably well, with consumers gravitating towards cost-effective summer essentials. In contrast, higher-end and luxury purchases faced significant challenges.
Helen Dickinson, chief executive of the British Retail Consortium, commented on the market trends: “July saw modest sales growth. Non-food sales were hit by the decline in footfall as shoppers avoided the heat.”
She further observed that consumers were focusing on smaller luxuries, such as beauty items and fashion jewellery, while postponing larger purchases. Dickinson emphasised that the figures underscore a difficult beginning for retailers in the latter half of the year, stating, “household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.” She urged the Government to take action to alleviate business costs, arguing that taxes and regulation are hindering retailers’ investment capacity and contributing to higher prices.
Sarah Bradbury, CEO of the IGD, acknowledged a slight recovery in shopper confidence, attributing it to various factors including easing inflation, a new Government in place, ongoing warm weather, and the success of England’s World Cup campaign.
Despite this improvement, Bradbury cautioned that many consumers are still conscious of their spending. She highlighted challenges in the food supply chain stemming from recent conflicts in the Middle East and sustained high temperatures.
Overall, the BRC data indicates that as retailers move into the second half of 2026, consumers remain highly responsive to financial constraints and broader economic challenges, opting for affordable seasonal items and minor indulgences rather than larger discretionary expenditures.
