Key Takeaways
- UK retail sales fell 0.5% in July after 0.7% growth in June.
- Clothing and footwear sales dropped 2.7%, marking their sharpest fall since May 2025.
- Online retail sales declined 3.6% as households faced higher inflation and costs.
UK retail sales volumes declined 0.5% in July from the previous month, reversing the 0.7% growth recorded in June. The decline was slightly worse than the 0.4% fall economists had expected, with weaker clothing, online, and household goods sales weighing on overall retail activity.
Clothing and online sales lead July decline
Clothing and footwear retailers recorded a 2.7% monthly decline in sales during July. It was the steepest fall in the category since May 2025. Retailers indicated that earlier discount events in June had brought forward purchases, lifting June sales while reducing demand in July.
Non-store retailers, which mainly cover online businesses, also recorded a sharp decline. Sales in the category fell 3.6% during July, reflecting weaker activity compared with the previous month.
Household goods stores reported a 1.9% monthly decline. The falls across these categories offset stronger food sales, which increased 0.5% during the month.
Food retailers benefited from warm weather, which supported supermarket sales. Retailers selling alcoholic drinks also reported stronger activity, helped by promotions, warm conditions, and the final stages of the World Cup.
The monthly figures show a mixed pattern across the UK retail sector. Consumers continued spending on essential food products, while purchases of clothing, household goods, and online merchandise weakened during the month.
The latest figures also came as UK consumer price inflation increased to 2.9% in July from 2.6% in June. The higher inflation rate followed a 15-month low recorded in June.
Higher household expenses can affect spending on discretionary products such as clothing and household goods. Retailers also faced changes in promotional activity, with some sales occurring earlier than usual during June.
Three-month retail growth remains positive
Despite the monthly decline, UK retail sales volumes increased 1.1% in the 3 months to July compared with the previous 3 months. All major retail sectors except motor fuel recorded growth during this period.
The broader 3-month performance indicates that retail activity remained higher than in the preceding period, even though July brought weaker monthly results.
Warm weather supported sales of outdoor products and items such as fans. Clothing and online sports merchandise also recorded activity during the broader period, according to retail sector data.
For Indian business owners and retailers, the UK figures highlight how changes in discount timing, inflation, and weather can produce sharp monthly shifts in consumer demand. The 2.7% decline in clothing sales and 3.6% fall in online retail activity also show the uneven performance between individual retail categories.
The data points to a retail market where essential purchases remained comparatively resilient while discretionary spending faced greater pressure. The combination of higher inflation and weaker monthly demand could continue to influence retail performance during the second half of the year.
