Overall, retail sales in July increased 1.3% year-on-year, below the 12-month average of 1.8%.

Overall non-food sales decreased by 0.7% year-on-year, below the 12-month average growth of 0.4%, and in-store non-food sales decreased 1.9%, below the 12-month average decline of 0.2%.

However, online non-food sales increased by 1.3% year-on-year, compared with a 12-month average increase of 1.6%, while the share of non-food sales taking place online rose to 35.9%, up from 35.4% in July 2025.

The news follows a similar pattern seen in June 2026, when retail sales “maintained momentum”, defying a drop in physical footfall as a record heatwave kept shoppers indoors.

'Clothing was a bright spot' for retail

Helen Dickinson, chief executive at the British Retail Consortium, said that while non-food sales had taken a hit as footfall declined with the ongoing heatwaves in the UK, “clothing was a bright spot”.

She added that this was driven by “demand for affordable summer essentials,” although she also noted that “footwear struggled to keep up”.

“Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year,” Dickinson added. “Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs."

'Upturn for clothes continues'

Linda Ellet, head of consumer, retail and leisure at KPMG, added: “Despite the summer season getting started as early as May, the upturn for clothes, shoes and accessories has continued right through to August.

“With spend focused on summer-related purchasing, other non-food categories fared less well - limiting total non-food sales growth overall.”

'Pressures on household budgets' remain

Sarah Bradbury, CEO at IGD, added: “While shoppers are feeling more positive than earlier in the year, many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions.

"Despite this month's improvement, pressures are building across the food supply chain as a result of the conflict in the Middle East and prolonged hot weather, increasing the likelihood of higher food costs and renewed pressure on household budgets as we move into the autumn.”