UK retail sales fall 0.5% in July as hot weather shifts spending

Retail sales volumes fell in July after a stronger June, but the wider three-month trend remained positive, according to the latest ONS figures.

UK retail sales volumes fell 0.5% in July 2026, following a revised 0.7% increase in June, according to the Office for National Statistics (ONS).

The monthly decline was mainly concentrated in non-food stores and non-store retailers. Retailers told the ONS that some demand had been brought forward into June because of earlier-than-usual promotional activity.

Despite the July fall, the broader picture remained positive. Retail sales volumes were 1.1% higher in the three months to July than in the previous three-month period, while they were 3.0% higher than in the same period a year earlier.

July Sales Fell After a Stronger June

The latest figures show how volatile monthly retail data can be.

Sales volumes fell 0.5% in July after rising 0.7% in June. The June increase was revised down from the ONS’s previous estimate of 1.0%.

May was revised in the opposite direction, with growth increased from 1.2% to 1.3%.

The ONS advises that monthly movements can be volatile and should be considered alongside longer-term measures such as the three-month growth rate.

That makes the three-month figure particularly important: despite July’s decline, retailers sold more goods overall during the latest three-month period than they did in the previous three months.

Non-Food Retailers Were Hit Hardest

The main weakness in July came from non-food stores and non-store retailers.

The ONS said retailers reported that earlier promotional activity had brought some consumer demand forward into June, leaving less spending for July.

That effect was particularly relevant for retailers selling discretionary goods, where customers can choose when to make a purchase.

However, the picture was considerably stronger over the three months to July. Non-food store sales volumes increased 1.0% compared with the previous three-month period.

Furniture stores recorded increases in both May and June, while clothing retailers also reported stronger sales during May and June, helped by promotions and warmer weather.

Hot Weather Boosted Some Retail Spending

The summer weather did not simply reduce retail activity.

Instead, it changed what people were buying.

The ONS said non-store retailers benefited from promotions, sports merchandise and the hot weather, which increased demand for products such as fans.

Supermarkets also performed well during the warm weather, with retailers reporting stronger sales of alcoholic drinks and other beverages.

This helps explain why the overall retail picture is more complicated than the 0.5% monthly fall suggests.

Some parts of the retail market weakened, while others benefited from seasonal demand.

Online Spending Fell in July but Remains Above Last Year

Online spending also declined during the month.

The value of online retail sales fell 3.9% in July, reversing a 2.5% increase in June.

However, online sales remained 6.5% higher than in July 2025.

Looking at the wider three-month period, online spending values were 3.0% higher than in the three months to April and 11.0% higher than a year earlier.

That suggests the July decline was a monthly setback rather than evidence that consumers have suddenly reversed their shift towards online shopping.

The ONS also notes that non-store retailing includes more than online retailers, including businesses such as street stalls and markets.

Fuel Sales Tell a Different Story

Automotive fuel sales volumes increased in July, although they remained below their February 2026 level.

The ONS said fuel sales had been affected earlier in the year by changes in consumer behaviour following movements in fuel prices and the conflict in the Middle East.

Some motorists had stocked up on fuel in March, followed by weaker sales in April as prices increased and some people made fewer journeys.

This is another reason why individual monthly movements need to be treated carefully when assessing the overall health of consumer spending.

The Three-Month Picture Remains Positive

The strongest argument against describing July as a major deterioration in consumer spending comes from the broader trend.

Retail sales volumes increased 1.1% in the three months to July compared with the three months to April.

They were also 3.0% higher than in the three months to July 2025.

On a monthly year-on-year basis, sales volumes were 1.6% higher than in July 2025.

Sales volumes were also only 0.1% below their February 2020 level, the ONS’s pre-pandemic comparison point.

Taken together, those figures suggest that July’s decline should be viewed as a monthly pullback rather than clear evidence of a major collapse in consumer demand.

What the Figures Mean for Retailers

For retailers, the data present a mixed picture.

The immediate concern is that July sales weakened after a stronger June. Businesses that benefited from promotions and seasonal demand may now face a tougher comparison as the summer period ends.

But the three-month figures remain encouraging, particularly for non-food stores and online retailers.

The data also show that consumer spending is being influenced by several temporary factors, including promotions and weather. That makes it difficult to judge the underlying direction of demand from one month’s result.

The ONS itself warns that monthly retail movements can be volatile and recommends looking at the three-month trend alongside the monthly figure.

What to Watch Next

The next few months will show whether July’s decline was mainly a temporary correction after stronger June sales or the beginning of a longer slowdown in consumer demand.

Retailers will also be watching the impact of household costs and price changes as the summer ends.

For now, the latest data point to a mixed but relatively resilient retail sector: monthly sales fell in July, but sales over the latest three-month period were higher than both the previous three months and the same period last year.

For businesses, that broader trend may be more significant than the headline 0.5% monthly decline.

Source: Office for National Statistics, Retail sales, Great Britain: July 2026, published 21 August 2026.