Retail activity in Great Britain lost momentum in July 2026, with sales volumes falling by 0.5% over the month. Even so, the wider picture remained positive: over the three months to July, retail sales volumes increased by 1.1% compared with the previous three-month period.

That contrast reflects a summer shaped by promotions, hot weather, the World Cup and shifting consumer timing. Many retailers said unusually early discounts in June pulled some spending forward, leaving July looking weaker than it otherwise might have.

July Falls After June Strength

Retail sales volumes declined by 0.5% in July after rising by 0.7% in June and 1.3% in May.

The June figure was revised down from an earlier estimate of 1.0%, while May was revised slightly higher from 1.2%.

Despite the monthly fall, July sales volumes were still 1.6% higher than a year earlier.

Compared with February 2020, before the COVID-19 pandemic disrupted shopping patterns, volumes were just 0.1% lower.

That means overall retail activity has largely recovered to pre-pandemic levels, although performance remains uneven across different parts of the sector.

Three-Month Growth Remains Positive

Sales volumes rose by 1.1% in the three months to July compared with the three months to April. They were also 3.0% higher than in the same three-month period a year earlier.

Most major retail sectors contributed to that growth. Non-store retailers performed particularly well during May and June, helped by promotions and warm weather. Retailers reported stronger demand for outdoor products, fans, clothing and sports merchandise.

Food stores also benefited from the hot conditions, while supermarkets saw stronger sales of drinks and other seasonal products. Alcoholic beverages also performed well, with retailers linking demand to promotions, hot weather and the World Cup.

Non-Food Stores Lose Momentum

Non-food stores grew by 1.0% over the three months to July, but the monthly picture was weaker. Sales volumes in non-food stores fell by 1.3% in July.

Clothing retailers were among those reporting a slowdown after stronger sales in May and June. One explanation was timing. Some retailers brought promotions forward into June rather than waiting until July, encouraging consumers to make purchases earlier.

Hot weather may also have reduced footfall in some clothing stores. There was further evidence of fewer discounts in July, with the share of reduced-price clothing items falling between June and July.

Furniture Also Weakens

Household goods stores followed a similar pattern. Furniture sales had been strong during May and June, but demand weakened in July.

Retailers suggested the heatwave may have discouraged purchases of certain household products. Department stores also recorded lower sales volumes, with some businesses pointing to stock availability problems. These declines helped pull the overall retail figure lower for the month. Even so, total sales volumes remained at their second-highest level since April 2022.

Food Stores Hold Up Better

Food retailers were one of the brighter areas in July.

Sales volumes rose over the month, partially offsetting declines elsewhere. Supermarkets benefited from hot weather and World Cup-related demand. The combination of warm conditions, social gatherings and promotional activity encouraged purchases of drinks and other food products.

That resilience helped prevent the monthly retail decline from becoming steeper. The data suggest that consumer spending did not collapse in July; instead, it shifted between categories.

Online Spending Drops in July

Online retail told a similar story of strong medium-term growth but weaker monthly performance. Online spending values rose by 3.0% in the three months to July compared with the previous three-month period. They were also 11.0% higher than in the three months to July 2025. However, online spending fell sharply by 3.9% in July alone, following a 2.5% rise in June. Even after that drop, online sales values were still 6.5% higher than a year earlier.

Total retail spending, combining online and in-store purchases, fell by 0.6% over the month. As a result, the online share of total retail sales slipped from 29.2% in June to 28.3% in July.

Promotions Distort the Monthly Picture

One of the clearest themes in the July data is the impact of promotional timing. Earlier-than-usual discounts appear to have encouraged consumers to spend more in June.

That strengthened the June figures but left fewer purchases to be made in July. This effect was visible across clothing, non-store retail and some household categories. Monthly retail figures can therefore be volatile, especially when promotions, major sporting events and unusual weather all influence when consumers decide to spend.

For that reason, the three-month trend gives a more stable picture.

The Bigger Picture

The July figures show a retail sector that is still growing overall, but not in a straight line.

Three-month sales volumes are up, annual comparisons are positive, food retail remains resilient and online spending is significantly higher than a year ago.

At the same time, consumers are clearly sensitive to promotions, prices, weather and major events.