UK shoppers spent more on groceries in July even as soaring temperatures kept many out of shops and reduced in-store purchases of non-food items, industry figures show. Food sales rose by 3.8% year-on-year, supported in part by the later stages of the World Cup, while overall retail growth slowed.
Food buoyed by football and summer weather
The latest BRC-KPMG retail sales monitor recorded a modest expansion in total retail sales of 1.3% in the four weeks to 1 August, down from 2.5% in the previous period. The strongest element of July’s performance was grocery: food sales increased by 3.8% compared with the same month a year earlier, a fraction below June’s rate of 3.9%.
Industry chiefs said two forces supported food demand. The World Cup’s final phases encouraged celebratory purchases, while the heatwave altered shopping patterns so households did more concentrated grocery buying rather than many routine store trips.
Non-food hit by falling footfall, online sales continue to absorb demand
Non-food purchases fell by 0.7% year-on-year across the month, with in-store non-food sales down by 1.9% — reversing gains recorded in June. Retailers reported weaker footfall as consumers sought to avoid the hottest spells.
Online channels continued to take a larger share of discretionary spending. The proportion of non-food items bought online rose to 35.9%, up from 35.4% in the prior period, with smaller-item categories such as beauty and jewellery performing better than big-ticket goods.
“Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year. Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.”
The comment came from the BRC’s chief executive, who warned that the combination of hot weather and squeezed household budgets had left retailers navigating a delicate environment as the year progresses.
IGD’s chief executive highlighted a silver lining: England’s late run in the World Cup had lent some extra confidence to shoppers that helped offset a broader cooling in demand.
Winners and losers
Analysis of category performance suggests contrasting fortunes for different parts of the market. Clothing proved resilient, lifted by demand for affordable summer essentials, whereas footwear and larger investment purchases — including furniture and computing — were put on hold by many households.
- Food: +3.8% year-on-year (July)
- Overall retail: +1.3% (four weeks to 1 August)
- Non-food: -0.7% year-on-year
- In-store non-food: -1.9%
- Non-food online share: 35.9% (up from 35.4%)
| Metric | July / four-week period |
|---|---|
| Food sales (y/y) | +3.8% |
| Overall retail (y/y) | +1.3% |
| Non-food (y/y) | -0.7% |
| In-store non-food (y/y) | -1.9% |
| Non-food online share | 35.9% (was 35.4%) |
Industry sources also flagged operational strains linked to the prolonged heat. Some retailers have been contending with equipment failures such as refrigeration breakdowns, while agricultural and water stress in Europe has raised concerns among growers and some politicians about potential disruptions to food supply if drought conditions persist.
Outlook: fragile recovery amid stretched budgets
Retail leaders said the current picture pointed to a cautious second half of the year. Households remain under pressure from rising costs, and any further extreme weather or supply shocks could compound the difficulties facing shopkeepers and supermarkets alike.
For now, the mix of a major sporting event and unusually hot conditions has redistributed where and how consumers are spending: groceries and online channels have benefited, while traditional bricks-and-mortar non-food sales have lost momentum — at least for the summer months.
