| Consensus | Consensus Range | Actual | Previous | Revised | |
|---|---|---|---|---|---|
| Month over Month | 0.3% | 0.0% to 0.3% | 0.6% | 0.9% | 0.3% |
| Year over Year | 1.3% | 0.8% to 1.4% | 1.1% | 1.7% | 0.9% |
Highlights
Retail activity in July 2025 reflected both seasonal and event-driven momentum, with sales volumes rising 0.6 percent in July after a 0.3 percent gain in June. Much of this growth was powered by clothing and online retail, where consumer enthusiasm appeared to intersect with favourable weather and the UEFA Women's EURO 2025 tournament. The delay to the retail sales figure, which was initially scheduled for August 22, was due to the detection of an error in the calculations of the retail sales figure.
Online sales volumes jumped 2.5 percent, their strongest performance since February 2022, underscoring how digital channels continue to capture a larger share of consumer spending. Clothing stores also enjoyed a 2.5 percent monthly uplift and a 5.5 percent annual surge, the biggest since January 2023, driven by new product launches and weather-aligned consumer demand.
The broader non-food sector gained 0.6 percent, reflecting strong appetite beyond essentials, while overall online spending climbed 2.0 percent month-over-month and 3.7 percent year-over-year. Importantly, total retail spending increased 1.0 percent in July, nudging the online share of retail sales up to 27.8 percent.
These figures suggest consumer behaviour is increasingly influenced by digital convenience, product innovation, and cultural events. The combination of resilient online sales and the resurgence of clothing retail highlights how external factors, such as sports tournaments and weather, can act as catalysts for short-term retail vibrancy while reinforcing long-term structural trends in consumption. These updates take the RPI to 35 and the RPI-P to 33, meaning that economic activities continue to outpace the expectations of the UK economy.
Online sales volumes jumped 2.5 percent, their strongest performance since February 2022, underscoring how digital channels continue to capture a larger share of consumer spending. Clothing stores also enjoyed a 2.5 percent monthly uplift and a 5.5 percent annual surge, the biggest since January 2023, driven by new product launches and weather-aligned consumer demand.
The broader non-food sector gained 0.6 percent, reflecting strong appetite beyond essentials, while overall online spending climbed 2.0 percent month-over-month and 3.7 percent year-over-year. Importantly, total retail spending increased 1.0 percent in July, nudging the online share of retail sales up to 27.8 percent.
These figures suggest consumer behaviour is increasingly influenced by digital convenience, product innovation, and cultural events. The combination of resilient online sales and the resurgence of clothing retail highlights how external factors, such as sports tournaments and weather, can act as catalysts for short-term retail vibrancy while reinforcing long-term structural trends in consumption. These updates take the RPI to 35 and the RPI-P to 33, meaning that economic activities continue to outpace the expectations of the UK economy.
Definition
Retail sales measure the total receipts at stores that sell durable and nondurable goods. The data include all internet business whose primary function is retailing and also cover internet sales by other British retailers, such as online sales by supermarkets, department stores and catalogue companies. Headline UK retail sales are reported in volume, not cash, terms but are available in both forms. The data are derived from a monthly survey of 5,000 businesses in Great Britain. The sample represents the whole retail sector and includes the 900 largest retailers and a representative panel of smaller businesses, including internet sales. Collectively, all of these businesses cover approximately 90 percent of the retail industry in terms of turnover.
Description
With consumer spending a large part of the economy, market players continually monitor spending patterns. The monthly retail sales report contains sales data in both pounds sterling and volume. UK retail sales data exclude auto sales.
The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.
Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps apparel sales are showing exceptional weakness but electronics sales are soaring. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.
The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.
Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps apparel sales are showing exceptional weakness but electronics sales are soaring. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.
