It’s been a record breaking summer for hot weather in the UK, with the soaring temperatures inevitably having a knock-on effect on businesses.
The picture from within the retail industry has been mixed. While the hot weather deterred some shoppers from the high street, supermarket revenues fared well, alongside sales of alcoholic drinks and beverages, as consumers enjoyed outdoor picnics, barbecues and social gatherings.
The latest Office for National Statistics retail sales figures revealed that overall retail revenues were estimated to have risen 1.1 per cent in the three months to July 2026.
However, sales took a hit in July. Revenues were estimated to have dropped 0.5 per cent over the month, which was the hottest, sunniest and driest month for the UK since records began 120 years ago, according to the University of Reading.
Hot weather has started to work against retailers
Food stores, department stores, other non-food stores, textile clothing and footwear stores, and household goods stores all witnessed revenue rises for the three months to July, according to the ONS. Household goods saw the biggest increase at 2.5 per cent.
However, department stores, textile clothing and footwear stores, and household goods stores saw sales decline over July. Textile clothing and footwear stores experienced the largest drop over the month of -2.7 per cent.
Alvarez & Marsal European retail and consumer lead Erin Brookes notes that “after a strong start to the summer, a slowdown in retail sales is not unsurprising, despite improving consumer confidence”.
“Prolonged hot weather has started to work against retailers, keeping shoppers away from the high street and concentrating spending on a narrower range of seasonal purchases including outdoor products, fans, drinks and sports merchandise,” she argues.
Echoing this, Accenture UK and Ireland consumer goods, retail and travel lead Andrew Carlisle says: “Flat retail sales in July will come as a disappointment to retailers who had hoped June’s growth in spending would extend across the summer, supported by the closing stages of the World Cup and the peak of the summer holiday season.
“Instead, the prolonged heat discouraged shoppers from heading out.”
He also notes that “this summer’s prolonged hot weather” will have given retailers “plenty to reflect on”.
“As traditional seasonal patterns become less reliable, businesses will need greater flexibility in how they forecast demand, manage inventory and respond to sudden shifts in spending,” he says.
“Mediterranean-style” fridges and a store closure
It’s not just retail sales that have been impacted by the summer of heatwaves.
In July, it was reported that Waitrose was preparing to introduce refrigeration systems designed to operate in temperatures of up to 48C as extreme summer heat put growing pressure on vital supermarket infrastructure.
Earlier this month, Hotel Chocolat was also forced to temporarily close one of its stores and bring in emergency cooling equipment as record temperatures threatened to melt its chocolate stock.
Despite acknowledging that “the high street failed to benefit” in July “as heatwaves continued to impact footfall,” PwC UK head of retail Jacqueline Windsor highlights that “UK retail overall has had a strong spring-summer season, helped by fine weather, low inflation, and improving consumer confidence.”
However, as the months and the heat have pressed on, it seems to have taken its toll on the UK’s in-store retail sector.
Ebury UK country manager Phil Monkhouse affirms: “Retail sales dried up in July as the heatwave put shoppers off hitting the high street, highlighting the pressure retailers are facing during the crucial summer trading period.”
Retail Economics head of commercial content Nicholas Found adds: “Sunshine, England’s World Cup run and a calmer economic backdrop lifted the national mood in July, but that optimism translated into selective spending rather than a broad retail recovery.
“Consumers prioritised experiences, summer essentials and smaller indulgences such as beauty. Extreme heat reshaped where people spent, driving shoppers away from high streets and towards online.”
With heatwaves likely to become more frequent for the UK, in-store retailers will need to adapt to a warming climate to stay on top of their game in summers to come.
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