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British consumers increased spending on food, pubs and clothing in July, supported by England’s run to the World Cup semi-finals and unusually hot weather. However, shoppers remained cautious about larger purchases as pressure on household finances persisted.
According to the British Retail Consortium (BRC), total UK retail sales increased 1.3% compared with July 2025. The pace was below average and marked a slowdown from the 1.9% annual growth recorded in June.
Food sales were among the strongest performers, rising 3.8%, while non-food sales declined 0.7%. Hot weather encouraged consumers to refresh their summer wardrobes, lifting clothing sales, although footwear spending weakened.
Food prices could become a bigger concern heading into autumn. Sarah Bradbury, chief executive of the Institute of Grocery Distribution, warned that pressures were mounting across the food supply chain because of the conflict in the Middle East and prolonged hot weather. These factors could increase food costs and put renewed pressure on UK household budgets.
Separate Barclays data showed broader consumer spending rose 2.0%, slightly above the 1.9% increase recorded in June. Essential spending grew 2.9%, while expenditure on non-essential items increased by a more modest 1.6%.
England’s World Cup performance provided a particularly strong boost for pubs, which recorded a 10% increase in transactions as football fans gathered to watch the tournament.
Travel spending, meanwhile, indicated that British consumers were favouring domestic holidays. Spending on airlines fell 6%, suggesting more households opted for UK “staycations” rather than overseas trips.
Despite continued caution over discretionary spending, consumer sentiment showed signs of improvement. Barclays’ consumer confidence measure found optimism about the UK economy had reached its highest level in 21 months.
The BRC figures covered July 5 to August 1, while Barclays’ consumer spending data covered June 20 to July 23. Together, the surveys suggest major sporting events and summer weather provided a temporary boost to UK consumer spending, even as concerns about food prices and household budgets remained.
