UK retail sales perked up in July, with volumes rising 0.6% following June’s 0.3% gain, according to fresh figures from the Office for National Statistics (ONS). The boost came largely from clothing and online retailers, which reported stronger demand thanks to new product launches, warm weather and the UEFA Women’s Euro 2025 tournament.
Despite July’s uplift, sales volumes fell 0.6% over the three months to July compared with the previous quarter, breaking a run of four months of growth. The decline was driven by weaker spending in food stores, household goods and sports and toy shops.
Online sales continued their steady climb, up 2% in July — the sixth consecutive monthly rise — pushing the share of internet sales to 27.8% of total retail.
The ONS said it had corrected seasonal adjustment errors in previous data, but stressed the latest revisions still show a broadly consistent picture of steady underlying growth.
“Consumer confidence is still fragile, as the labour market shows increasing signs of strain and people worry about rising prices especially when it comes to the weekly food shop," commented AJ Bell's Danni Hewson. “But the bigger-than-expected jump in sales volumes in July is good news, even if the data was delayed for several weeks as the ONS once again apologised for issues with its data.
“Seasonal adjustments have been corrected, it says, but these issues do little to restore confidence in official figures, which are so important when it comes to understanding how the UK economy is performing.”
The ONS’s retail sales figures are a key input into GDP estimates and closely watched by policymakers, including the Bank of England.