UK retail sales rose 1.3% year on year in July, according to the latest British Retail Consortium (BRC) data, while non-food sales fell 0.7%, compared with 1.4% growth a year earlier.

The online share of non-food purchases edged higher to 35.9%, up from 35.4% in July 2025, although it remained below the 12-month average of 38%.

Clothing was among the strongest-performing non-food categories, as shoppers opted for affordable summer essentials, while larger-ticket and luxury purchases came under greater pressure.

Helen Dickinson, chief executive of the British Retail Consortium, said: “July saw modest sales growth. Non-food sales were hit by the decline in footfall as shoppers avoided the heat.

“Shoppers also prioritised smaller indulgences such as beauty products and fashion jewellery, while delaying bigger-ticket purchases.”

The figures point to a challenging start to the second half of the year for retailers, with Dickinson warning that “household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.”

She called on the Government to reduce the costs facing businesses, arguing that taxes and regulation were putting pressure on retailers’ ability to invest and pushing up prices.

IGD chief executive Sarah Bradbury also pointed to improving shopper confidence, but said value remained central to purchasing decisions.

“July brought a welcome uplift in shopper confidence,” she said, citing easing inflation, the new Government, continued warm weather and England’s World Cup run as factors supporting sentiment.

However, she warned that many households remained mindful of their budgets, while pressures were building across the food supply chain as a result of conflict in the Middle East and prolonged hot weather.

The BRC figures suggest retailers enter the second half of 2026 with consumers still highly sensitive to household budgets and wider economic pressures, favouring affordable seasonal purchases and smaller treats over major discretionary spending.