Retail sales marginally rise in July as sports events and warm weather boost activity

Retail sales volumes across the UK are estimated to have increased by 0.6 percent in July 2025, according to a delayed monthly report by the Office for National Statistics (ONS). This followed a more modest 0.3 percent increase in June.

The quantity of goods bought fell 0.6 percent in the three months to July when compared to the three months prior, bringing to an end four months of consecutive three-month on three-month growth. Volumes also remained below pre-pandemic levels in February 2020, declining 2.2 percent.

The decrease was attributed to stores stocking products like food, sports equipment and games. This was offset by better performance among non-store retailers and clothing stores, both of which reported stronger volume growth over July.

Clothing stores in particular welcomed a notable 2.5 percent increase in sales compared to the month prior and a 5.5 percent increase over the year. Retailers attributed the uptick to new products, good weather and a boost from the UEFA Women’s Euro 2025 tournament.

In a statement, Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, said the “delayed data helped to balance out some of the volatility seen in the first half of the year, but the positive trend remains intact”. “Retail sales have grown strongly in the last two months following the tax and tariff disruption in April,” she noted.

Baker continued: “Despite a small dip in consumer confidence in July, overall, it appears to be ticking up. But there’s every possibility that this progress could be undone with ongoing speculation and uncertainty over tax rises in the lead up to the later than expected Budget. This uncertainty could be a big hit to the all-important Golden Quarter, which would be particularly damaging for the retail sector.”