FX.co ★ UK Retail Sales Fall in July

UK retail sales volumes declined by 0.5% month-on-month in July 2026, matching market expectations and following a downwardly revised 0.7% increase in June. This was the first monthly fall since April, as non-food stores and non-store retailers saw a pullback after early promotional activity had brought demand forward into June.

Non-food store sales volumes fell by 1.3%, driven mainly by weaker clothing and household goods sales. Clothing retailers reported reduced footfall, attributing it to hot weather and fewer promotional offers. Household goods stores also saw lower demand as the heatwave dampened interest, while department stores were hit by stock availability issues.

Non-store retail sales declined after strong gains in May and June, when promotions, sports merchandise, and demand for outdoor products and fans had provided a significant boost.

These falls were partly offset by a 0.5% rise in food store sales, supported by hot weather and World Cup-related spending. On a yearly basis, overall retail sales were up 1.6% in July, the weakest annual increase in three months and down from 3.8% in June.