Over the four weeks to 2nd August 2025, food sales increased by 3.9% on the year, according to data from the British Retail Consortium (BRC).
UK total retail sales increased by 2.5% year-on-year in July, against a growth of 0.5% in July 2024 and above the 12-month average growth of 1.9%.
Food sales increased by 3.9% year-on-year in July, up from a growth of 3.3% in July 2024. This was above the 12-month average growth of 3.2%.
Helen Dickinson, chief executive of BRC, said: “Food sales did well in early July thanks to warm weather and a packed sporting schedule, though this momentum failed to hold for the rest of the month. Rising food inflation meant increased spending was more a result of higher prices than improved demand.
“With sales growth at these levels, it is barely touching the sides of covering the £7 billion new costs imposed on retailers at the last Budget. If the upcoming Autumn Budget sees more taxes levied on retailers’ shoulders many will be forced to make difficult choices about the future of shops and jobs, and ongoing pressure would push prices higher. Ultimately, this means more families struggling, particularly those on lower incomes, reduced consumer spending and a drag on economic growth.”
“With food price inflation climbing to 4.5% and economic uncertainty growing, shoppers face a tough outlook.”
Sarah Bradbury, CEO of IGD, said: “July’s shopper confidence fell to zero for the first time since April, cooling alongside the weather despite boosts from Wimbledon and the Lionesses’ win. More households are feeling the pinch yet trust in the industry rose by three points. With food price inflation climbing to 4.5% and economic uncertainty growing, shoppers face a tough outlook.
“Own label products continue to outperform brands, but modest volume growth shows inflation is masking any gains. A potential interest rate cut, and a sunny bank holiday could offer a much-needed boost at the end of the summer.”
Linda Ellett, UK head of consumer, retail and leisure, KPMG, said: “The UK’s fifth warmest July on Met Office record brought a boost to home appliance and food and drink sales. But rising inflation was also a driver of the latter and monthly non-food sales are only growing at around 1% on average at present. With employment costs having risen and inflation both a business and consumer side pressure, it remains a challenging trading environment for many retailers.”
