12th Aug 2025 05:03
(Alliance News) - UK retail sales grew in July, but industry leaders warned the pace was insufficient to offset rising costs and prevent store closures.
According to the latest British Retail Consortium-KPMG retail sales monitor, total retail sales increased 2.5% year-on-year in July, compared with growth of 0.5% a year earlier and above the 12-month average of 1.9%. Food sales rose 3.9%, while non-food sales climbed 1.4%.
The British Retail Consortium said warmer weather and major sporting events boosted early-month food and fashion sales, though momentum faded as conditions cooled.
BRC Chief Executive Helen Dickinson warned the growth rate was "barely touching the sides" of the GBP7 billion in new costs imposed on retailers in the last UK budget, and cautioned that more taxes could force "difficult choices" on shops and jobs.
Online non-food sales edged up 0.3% year-on-year, with the online penetration rate slipping to 34.8% from 35.1% last year.
KPMG's UK Head of Consumer, Retail & Leisure Linda Ellett said inflation and higher employment costs continued to pressure both businesses and consumers, with big-ticket purchases remaining subdued and competition for spending "fierce".
IGD Chief Executive Sarah Bradbury said shopper confidence cooled in July despite events such as Wimbledon and the Lionesses' football win, with households facing higher food price inflation and economic uncertainty.
By Eva Castanedo, Alliance News reporter
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