Retail Sales Volumes Rose 0.6% In July 2025

The ONS has published retail sales data for July.

Key points:

• Sales volumes fell by 0.6% in the three months to July 2025, compared with the three months to April 2025. This was mainly because of falls in food stores, sports equipment, games and toys stores, and household goods stores. These were partly offset by an increase in non-store retailing which are predominantly online retailers. This fall follows four months of consecutive three-month on three-month growth. The fall in the three months to July 2025 is because of higher monthly levels in March and April 2025. Sales volumes rose by 0.4%, compared with the three months to July 2024.

• Sales volumes rose by 0.6% over the month during July 2025, following a 0.3% rise in June. Sales volumes rose by 1.1% over the year to July 2025. Volumes were down by 2.2%, compared with their pre-coronavirus (COVID-19) pandemic level in February 2020. 

• Non-store retailers and clothing stores sales volumes grew strongly in July 2025, which retailers attributed to new products, good weather, and an increase resulting from the UEFA Women’s EURO 2025 tournament.
  
  
• Sales volumes from non-store retailers, which mainly includes online retailers, rose by 2.5% in July 2025. This puts sales volumes at their highest level since February 2022. Retailers suggested that good weather and events such as the Union of European Football Associations (UEFA) Women’s Euro 2025 tournament boosted sales.
  
  
• Non-food stores sales volumes – the total of department, clothing, household, and other non-food stores – rose by 0.6% over the month. This was mainly because of clothing stores rising by 2.5% over the month and 5.5% over the year. This was the largest annual rise since January 2023, putting sales volumes at their highest since June 2023. Retailer comments suggested the rise was because of new products being launched, alongside the continued good weather.
  
  
• The Met Office climate summaries reported that the UK had its fifth warmest July on record.
  
  
• The amount spent online, known as “online spending values”, rose by 2.0% over the month to July 2025 and by 3.7% when comparing July 2025 with July 2024. Sales values rose by 2.2% when comparing the three months to July 2025 with the three months to April 2025.
  
  
• Total spend – the sum of in-store and online sales – rose by 1.0% over the month. As a result, the proportion of sales made online rose from 27.5% in June 2025 to 27.8% in July 2025.

Commentary

BRC

Responding to the latest ONS Retail Sales Index figures, which showed sales up 2.7% by value, and up 1.3% by volume, Dr Kris Hamer, Director of Insight at the British Retail Consortium, said:

“July was a good month for retail sales, as the warm, sunny weather and packed sporting schedule in the first half of the month got people spending, especially for alcoholic beverages as people came together. Fashion also sold well as people made purchases for their summer holidays, and furniture sales were up after being in decline in previous years.
 
“Unfortunately, this level of sales growth makes little dent on the £7bn of new costs that retailers are having to shoulder following last year’s Budget. With a date now sent for the next Budget, government must ensure that no additional tax is levied onto retailers, or else many will be forced to make difficult decisions around raising prices, store closures, and jobs.”

Marty Bauer, senior ecommerce expert at Omnisend, comments: “While the lead up to the summer may have been more challenging than usual, it is positive to see that July saw the well-needed uptick that retailers deserve.

“Despite ongoing cost-of-living pressures, July’s upward trend underscores that consumers are continuing to part with their cash, especially when prompted by good weather and major sporting events.

“While July may have enjoyed a larger rise in sales than previously expected, brick-and-mortar retailers on the high street and in shopping centres are still facing challenges.

“The recent news that River Island plans to shutter over thirty stores is a stark reminder that pressures on physical retail haven’t gone away, especially with the likes of ultra-low-cost e-commerce brands like Shein and Temu drawing customers away.

“Dozens of retailers have recently warned that potential business rate and tax hikes in the autumn budget could translate into higher prices and job losses. This is particularly concerning as many businesses are already gearing up for the crucial Christmas trading period, with pre-orders on festive products underway.

“Rising inflation levels could also be a deterrent, although at the moment, they are proving to be opportunistic and quick to respond to promotions, weather shifts, and national events. At the same time, consumers are equally quick to cut back when wallets tighten. 

“We may see more retailers switching to flash sales and limited-time offers as a way of catching attention, rather than long-term strategies to keep costs down for customers.”

Source : ONS

Image : shutterstock / 1137631598 / William Barton

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