This rebound comes after the previous year’s decline of 1.8% in the same month.
In the four weeks to 2 August 2025, in-store non-food sales also experienced an uptick, rising by 1.9% compared to the previous year’s decrease of 3%, exceeding the 12-month average growth of just 0.2%.
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British Retail Consortium chief executive Helen Dickinson 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.
“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. If the upcoming Autumn Budget sees more taxes levied on retailers’ shoulders, many will be forced to make difficult choices about the future of shops and jobs, and ongoing pressure would push prices higher. Ultimately, this means more families struggling, particularly those on lower incomes, reduced consumer spending and a drag on economic growth.”
However, the online segment of non-food retail sales showed a more subdued performance, with a marginal increase of 0.3% year on year, which is below the 12-month average growth rate of 1.9%.
The online penetration rate, which is the proportion of non-food items bought online, has seen a slight decrease to 34.8% in July from 35.1% in July last year, falling short of the average rate of 36.7%.
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By GlobalDataIGD Food & Drinks Sector Performance CEO Sarah Bradbury said: “July’s shopper confidence fell to zero for the first time since April, cooling alongside the weather despite boosts from Wimbledon and the Lionesses’ win. More households are feeling the pinch yet trust in the industry rose by three points.”
Overall, UK total retail sales saw a significant rise by 2.5% year on year in July, outpacing the modest growth of 0.5% recorded in July of the prior year and moving ahead of the 12-month average growth rate of 1.9%.
KPMG consumer, retail & leisure UK head Linda Ellett said: “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.”
