UK retail sales rose 1% year-on-year on a like-for-like basis in July 2026, undershooting market expectations for a 1.5% gain and easing from a 1.7% increase in June. It was the weakest pace of growth since February, as households remained cautious about major purchases despite England’s run to the World Cup semi-finals and an extended heatwave.
Food sales increased 3.8%, while non-food sales fell 0.7%. Within non-food, clothing sales were supported by the hot weather, but footwear sales declined.
Barclays’ broader gauge of consumer spending rose 2% year-on-year, marginally above June’s 1.9% increase. Essential spending grew 2.9%, and non-essential outlays were up 1.6%. Pub transactions surged 10% in the month, boosted by World Cup fixtures, while travel spending tilted towards domestic staycations, with airline expenditure down 6%.
Barclays’ consumer confidence index also climbed to its most optimistic reading on the UK economy in 21 months.
