Consumer demand for cool clothes and garden accessories was a bright spot in an otherwise glum July for retailers as the relentless heat took its toll, figures show.
Total retail sales across the UK were up 1.3% year on year last month, below the 12-month average of 1.8%, according to data from the British Retail Consortium (BRC) and KPMG.
Food sales boosted by World Cup
England’s progress to the semi-finals of the World Cup helped drive a 3.8% increase in food sales, above the 12-month average of 3.4%.
However, non-food sales were down 0.7% on last July as shoppers avoided the heat of the high street.
Clothing and small indulgences shine
Clothing was a bright spot, driven by demand for affordable summer essentials, while shoppers also prioritised smaller indulgences such as beauty products and fashion jewellery but delayed bigger-ticket purchases including furniture and computing.
BRC chief executive Helen Dickinson said: “Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year.
“Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.”
Linda Ellett, UK head of consumer, retail and leisure markets at KPMG, said: “Despite the summer season getting started as early as May, the upturn for clothes, shoes and accessories has continued right through to August.
“The prolonged warm weather has also aided home entertaining and garden-related purchases and, coupled with England’s progress to the tail-end of the World Cup, brought a boost to food and drink sales in July.”
Card spending up, pubs and cinemas benefit
Separate figures from Barclays show consumer card spending grew by 2% year on year in July, up from 1.9% in June, with England’s run at the World Cup, the July heatwave and recovering consumer confidence all contributing to the uplift.
England’s World Cup performances contributed to the volume of pub transactions growing 10% in July, with the value of spending up 7.4% – its highest level since December 2023.
Meanwhile, the overall hospitality and leisure category grew 2.2%, with cinemas enjoying a 2.6% boost following the release of Toy Story 5 and The Odyssey.
Travel spending declined for the fifth consecutive month, down 0.3%, with airline spending contracting by 6% but hotels, resorts and accommodation growing 2.6%, suggesting holidaymakers are still prioritising staycations over trips abroad.
A survey for the bank found 20% of UK adults bought light and cool summer clothes in response to the heatwave.
Rohan Kumar, head of spend insights at Barclays, said: “Card spending strengthened further in July, reaching its highest level for 12 months, with both essential and non-essential spend remaining in growth.
“Multiple factors played a part, with UK staycations, continued warm weather and England’s World Cup run lifting spending on travel, hospitality, everyday essentials and seasonal retail categories.”
