Total retail sales across the UK increased by 1.9% year-on-year in June, significantly boosted by a 5.1% rise in online sales of non-food products, according to the British Retail Consortium (BRC)-KPMG data. In-store non-food sales fell 1.1% year-on-year, below the 12-month average growth of 0.1%, highlighting the impact of the heatwave on brick-and-mortar retailers.
Online Sales Surge as Consumers Beat the Heat
Electric fans and paddling pools were top sellers as shoppers stayed home to avoid soaring temperatures. BRC chief executive Helen Dickinson said: “Retail sales maintained momentum despite June’s heatwave. While in-store sales were stifled by soaring temperatures, the proportion of sales online was the highest of 2026, bolstered by well-timed promotions. Electric fans and paddling pools performed well, as people looked to cool off, while the lure of the sunshine meant that gaming and big ticket sales struggled.”
World Cup Drives Hospitality Spending
Separate figures from Barclays show consumer card spending grew 1.9% year-on-year in June, with non-essential spending up 1.7%, driven by stabilizing consumer confidence, warm weather, and the World Cup. Pub transactions peaked on Saturday, June 27, when England faced Panama, reaching five times the daily average (up 389.9%) and a 161.7% year-on-year increase. On Sunday, July 5, and Monday, July 6, when England played Mexico with a delayed 2am BST kick-off due to weather, payments tripled, up 201.5% year-on-year. England’s draw against Ghana on Tuesday, June 23, also boosted pub payments by 244.3% year-on-year.
Linda Ellett, UK head of consumer, retail and leisure markets at KPMG, said: “Record-breaking temperatures continued from May into June, with retail sales again rising. Demand for fans and air con units helped drive up home appliance sales, with some retailers struggling to restock fast enough, while the men’s football World Cup also brought a boost for home electrical sales and food and drink.”
Economic Outlook
Jack Meaning, chief UK economist at Barclays, commented: “While additional spending around the World Cup will be a welcome cushion for the hospitality sector, it remains true that the economy has slowed into the middle of the year. Looking ahead to the second half of 2026, we expect growth to pick up modestly, as improving consumer sentiment and reduced uncertainty are partially offset by the temporary inflation bump.”
