UK Retail Sales Growth Misses Forecasts in July

UK retail sales rose 1.8% year-on-year on a like-for-like basis in July 2025, slowing from a 2.7% gain in June and falling short of the expected 2.1% increase.

Food sales climbed 3.9%, supported by warm weather and a busy sporting calendar, though higher spending was driven largely by food inflation rather than stronger demand.

Non-food sales grew 1.4%, with fashion performing well early in the month before slowing as weather conditions worsened, while homeware and indoor furniture maintained steady gains.

Helen Dickinson, Chief Executive of the British Retail Consortium, warned: “With sales growth at these levels, it is barely touching the sides of covering the £7 billion in new costs imposed on retailers at the last Budget.

If the upcoming Autumn Budget adds further taxes, many retailers will face tough decisions over stores and jobs, and the ongoing pressure could push prices higher.”