UK retail sales rose in July, with the warmer weather and a series of sporting events helping to boost food and non-food revenues.

Total retail sales increased 2.5% year on year over the month, compared to a rise of 0.5% in July 2024, according to the British Retail Consortium (BRC).

Food revenues were up 3.9% over the period, against a 3.3% growth the year before, while non-food sales increased 1.4% compared to a 1.8% decline the same time last year.

In-store non-food sales rose 1.9% in July from a decline of 3% last year, as online non-food revenues lifted 0.3% against a 0.3% growth in 2024.

BRC chief executive Helen Dickinson said: “Food sales did well in early July thanks to warm weather and a packed sporting schedule, though this momentum failed to hold for the rest of the month.

“Rising food inflation meant increased spending was more a result of higher prices than improved demand.

“Fashion sold well early in the month, but deteriorated as weather worsened, while homeware and indoor furniture grew steadily, recovering from the previous year’s decline. Gaming and toys sold particularly well, as nostalgic adults purchased products like Lego.

However, Dickinson warned that “with sales growth at these levels, it is barely touching the sides of covering the £7bn new costs imposed on retailers at the last Budget”.

“If the upcoming Autumn Budget sees more taxes levied on retailers’ shoulders many will be forced to make difficult choices about the future of shops and jobs, and ongoing pressure would push prices higher,” she said.

“Ultimately, this means more families struggling, particularly those on lower incomes, reduced consumer spending and a drag on economic growth.”

Click here to sign up to Retail Gazette‘s free daily email newsletter