UK retail sales volumes increased by 0.6 percent in July 2025 compared with the previous month, marking a rebound from June’s 0.3 percent rise, according to the Office for National Statistics (ONS). The monthly gain was supported by strong performances from non-store retailers and clothing stores, with sales volumes in both categories rising by 2.5 percent month-on-month. Analysts attributed the growth to favorable summer weather and events such as the UEFA Women’s Euro 2025 tournament, which boosted consumer spending on clothing and other related products.
Despite the July uplift, retail sales volumes over the three months to July declined by an estimated 0.6 percent quarter-on-quarter, following four consecutive months of growth. The quarterly decline reflects high sales levels recorded in March and April 2025, which set a strong baseline for comparison. Year-on-year, retail sales volumes rose modestly by 0.4 percent, indicating steady but subdued annual growth.
Non-store retailers, primarily online sellers, achieved their highest monthly sales volumes since February 2022, reflecting the continuing shift in consumer behavior toward e-commerce. Overall non-food store sales, which include department stores, clothing stores, household goods, and other non-food outlets, rose 0.6 percent month-on-month in July. Clothing stores were particularly strong, with sales volumes up 2.5 percent month-on-month and 5.5 percent year-on-year—the largest annual increase since January 2023, bringing sales volumes to their highest level since June 2023.
ONS noted that while some sectors such as food stores, sports equipment and games, and household goods saw weaker sales, the overall retail environment benefited from seasonal factors, consumer events, and promotional activities. Economists suggest that UK retailers are increasingly reliant on non-store and online channels to sustain sales growth amid a complex economic backdrop marked by inflationary pressures and changes in consumer spending patterns.
The data highlights the contrasting trends in UK retail: while month-on-month gains show resilience and responsiveness to short-term events, the quarterly decline underscores the challenges of maintaining consistent growth across sectors. Industry observers note that continued investment in online platforms and flexible inventory strategies will be critical for retailers navigating ongoing volatility in consumer demand.
