Retail sales volumes grow in quarter ending July 2026

The volume of retail sales is estimated to have grown 1.1% in the three months to July 2026 when compared to the previous quarter, the Office of National Statistics (ONS) has found.

The ONS also found that sales volumes were 3% higher than in the same quarter in 2025.

Increased sales was reported across all main sectors except automotive fuel, which saw a decline in sales that has been attributed to increased prices following the start of the Iran war.

Sports-related promotions around the World Cup and Wimbledon are among the factors to have contributed to rising sales. Warm weather also played its part, boosting sales of fans, as well as food and drink products in supermarkets, when benefited from higher sales of alcohol and other beverages.

Harvir Dhillon, Lead Economist at the British Retail Consortium, commented: 

“Sales growth among larger retailers was modest in July, as sustained high temperatures since May meant many consumers had brought forward much of their summer spending earlier in the season. Footwear and household goods struggled, while clothing provided a bright spot as shoppers continued to seek out affordable summer essentials to cope with the ongoing heat. Alcohol sales also saw a strong boost as people came together for the final games of the World Cup.”

While growth in sales was recorded across the quarter as a whole, month-on-month, sales volumes for July dipped slightly. This has in part has been attributed to non-food retailers bringing forward promotions into June, as well as hot weather in July reducing high street footfall.

Looking ahead, the BRC warns of rising household bills hitting retail sales in the coming months. Harvir Dhillon said:

“The months ahead look challenging for households, with rising bills set to put further pressure on already stretched budgets. For retailers, operating costs remain high, leaving limited room to absorb further increases without putting investment, jobs and prices under pressure. If the Government is serious about delivering growth while keeping the cost of living under control, it must reduce the cost of doing business. This means tackling the growing burden of business rates, packaging taxes and employment costs.”