The quantity of goods bought (volume) in retail sales is estimated to have fallen by 0.6% in the three months to July 2025 when compared with the three months to April 2025, according to the Office for National Statistics. This decline follows four months of consecutive three-month on three-month growth.
Retail sales volumes are estimated to have risen by 0.6% in July 2025, following an increase of 0.3% in June 2025.
Non-store retailers and clothing stores sales volumes grew strongly in July 2025, which retailers attributed to new products, good weather, and an increase resulting from the UEFA Women’s EURO 2025 tournament.
Sagar Shah, associate partner at McKinsey & Company, comments: “Record heat, staycations and a summer of sporting events, failed to lift the quantity of retail sales. The quantity of goods bought (volume) in retail sales is estimated to have fallen by 0.6% in the three months to July 2025, compared to the three months to April.
“There were some bright spots for retailers. Textiles, clothing and footwear, saw an increase of 2.5%. Likely driven by a summer of get-togethers and many families opting for short UK holidays.
This activity also lifted automotive fuel sales by 0.5%.
“In contrast, grocery sales saw a softer month, with sales volumes decreasing by 0.2%. This marginal drop is likely driven by people going out more in the summer.
“For retailers, understanding consumer behaviour in real time continues to be key, as customers cut back in some areas while indulging in others. Brands that win share of basket show up where value matters the most, with promotions that genuinely resonate.”
Cande Cooper, retail partner at Deloitte, said: “Retail sales volumes grew month-on-month in July, with the hot weather and a host of sporting and cultural events encouraging consumers to spend. While inflation persists, particularly in food, we are seeing consumers prioritising small luxuries such as clothing and beauty, as well as spending on experiences.
“The outlook for retail is a mixed bag. While July sales growth was strong, and non-store retailers did well, many consumers are expecting to spend less on both essentials and discretionary items in Q3 2025. To continue enticing price-sensitive consumers to spend, retailers need to respond to changing customer preferences by offering competitive pricing and focusing on value.”
