This was against a growth of 3.9% in July 2025, and above the 12-month average growth of 3.4%.

UK total retail sales increased by 1.3% on the year in July, against a growth of 2.5% in July 2025. This was below the 12-month average growth of 1.8%.

Helen Dickinson, chief executive at the British Retail Consortium, commented: “July saw modest sales growth, with food sales boosted by the final week of the World Cup.

“Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year. Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs. If the Government wants to drive growth and keep inflation under control, it must reduce the cost of doing business by tackling the taxes and regulatory burdens that are holding back investment and putting upward pressure on prices. These include business rates, new packaging taxes, and the rising costs of employment.”

“Many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions.”

Sarah Bradbury, CEO of the Institute of Grocery Distribution, stated: “July brought a welcome uplift in shopper confidence. Easing inflation, a new Government, continued warm weather and England’s World Cup run helped boost sentiment with sales and volumes increasing compared to July 2025.

“However, while shoppers are feeling more positive than earlier in the year, many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions. Despite this month’s improvement, pressures are building across the food supply chain as a result of the conflict in the Middle East and prolonged hot weather, increasing the likelihood of higher food costs and renewed pressure on household budgets as we move into the autumn.”