Report Summary

Period covered 05 July – 01 August 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30-day membership trial now.

Retail Sales Performance:

UK retail sales remained elevated in July, although growth slowed, while support from weather, sporting events and promotions changed through the month.

Retail sales rose xx% year-on-year according to the Retail Economics Retail Sales Index, easing from xx% in the previous month.

Performance remained uneven across categories, with health & beauty and clothing outperforming while furniture & flooring and footwear remained weaker. This continued to favour smaller, more affordable purchases over bigger commitments.

Factors impacting the headline performance in July include:

Heatwave: Record or near-record warmth and sunshine supported clothing, suncare, cooling products and seasonal demand, although earlier purchases reduced the incremental benefit as the season progressed.

World Cup: England's run supported food, drink and hospitality early in the month, with pub transactions up xx% year-on-year, but the benefit faded quickly after the tournament ended.

Category impact

Performance remained positive across most retail categories in July, although growth slowed across most categories and outcomes continued to vary significantly by sector. The strongest stories reflected a combination of current performance, month-on-month change and divergence between related categories.

Clothing rose xx%, slowing from xx% previously, while footwear fell xx versus xx% growth previously. Earlier warm-weather purchases reduced the incremental seasonal benefit and widened the gap within fashion.

Health & beauty remained the strongest-performing category, increasing xx% year-on-year and slowing from xx% previously. Seasonal personal care and sun protection added support, while affordable discretionary purchases remained resilient.

Food and grocery sales rose xx%, broadly maintaining the previous month's xx%. Hot weather and sporting occasions supported outdoor eating and summer socialising, while easing inflation supported budgets but kept value growth relatively restrained.

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Confidence edges up in August