Retail sales across Great Britain fell in July, even as record temperatures and the men’s football World Cup lifted demand for food, drinks and barbecue supplies. The volume of goods sold in stores and online dropped 0.5%, with clothing, furniture and department stores among the hardest-hit areas as shoppers stayed away from high streets.
Key takeaways
- Retail sales volumes fell 0.5% in July, following a revised 0.7% rise in June.
- Non-food sales declined 1.3%, led by weaker clothing demand.
- Hot weather supported food and drink purchases but redirected spending towards hospitality and online shopping.
- Pubs and sports bars benefited significantly from England’s World Cup run.
The figures indicate that major sporting events and favourable weather did not translate into a broad retail recovery. Instead, consumer spending shifted between sectors, with hospitality and travel capturing money that might otherwise have been spent in shops.
Non-food retailers bear the brunt
Non-food stores recorded the sharpest decline, with sales volumes falling 1.3% during the month. Clothing retailers were particularly affected after many businesses brought promotional sales forward into June, reducing the incentive to shop in July.
The extreme heat also discouraged visits to town centres and high streets. Some consumers chose to shop online or visit retail parks, while others avoided discretionary purchases altogether. Furniture sales weakened as households postponed decorating and home-improvement decisions during the hot spell. Department stores were also affected by reduced stock availability, with heat-related disruption contributing to longer delivery times for some retailers.
Food and drink provide a limited boost
Food and drink sales were among the few bright spots in the data. Sunny weather encouraged consumers to buy ingredients for barbecues, cold drinks and other summer occasions, while interest in World Cup matches added to demand for refreshments.
However, the benefit to retailers was limited because many people watched key games in pubs and sports bars rather than at home. The British Beer & Pub Association estimated that pubs served about 30 million additional pints during the tournament, generating roughly £150m in extra sales for its members. Hospitality spending therefore absorbed part of the demand created by the football competition.
Consumer behaviour shifts with the weather
The results underline how quickly weather can alter shopping habits. High temperatures can boost purchases of food, drink and seasonal products, but they can also reduce footfall, delay larger household purchases and encourage people to remain at home.
Sandra Prince, head of consumer at Lloyds, said hotter conditions may have moved spending online or towards retail parks. She added that retailers would be looking to the autumn for new ways to maintain consumer engagement as the summer peak faded.
Autumn outlook remains important
Retailers now face the challenge of converting cautious consumers into shoppers during the autumn trading period. The June increase in sales was revised down from an initial estimate of 1%, while July’s fall highlights the uneven nature of the recovery.
Jacqui Baker of RSM UK said consumers had spent on fans and barbecue food but prioritised pubs, travel and summer breaks over traditional retail. Retailers may therefore need sharper promotions, reliable stock and appealing online experiences to regain momentum in the months ahead.
