Retail sales in Great Britain fell in July, despite the men's football World Cup and record temperatures boosting demand for food and drink. According to the Office for National Statistics, the volume of goods sold in stores and online dropped by 0.5% in July. This follows a 0.7% rise in June (revised down from an initial estimate of 1%) and a 1.3% increase in May.
Non-food stores experienced the biggest decline, with sales falling 1.3%, driven by a drop in clothing purchases. Retailers had moved discount sales to June, while July's heatwaves led more people to stay home rather than visit the high street. Sandra Prince, head of consumer at Lloyds, said: "Hotter days could have shifted footfall and spending online or towards retail parks. For retailers, as the summer peak slows down, attention is now turning to the opportunities the autumn could bring to keep consumers engaged."
Furniture demand also fell, as fewer households chose to redecorate during the extreme heat, and department stores suffered from reduced stock availability. Many retailers had warned of longer delivery times during the heatwaves.
However, food and drink sales were a bright spot, as hot, sunny weather and excitement around World Cup matches boosted demand. Yet, gains could have been higher had it not been for pubs and sports bars—which count as hospitality rather than retail in official statistics—luring customers to their screens to watch major matches. The British Beer & Pub Association reported that late opening hours and England's progress to the semi-finals gave a major boost to the industry, with pubs pouring an extra 30 million pints over the tournament compared to a normal period, generating an additional £150 million in sales for its members.
Jacqui Baker, partner and head of retail at consultancy RSM UK, said: "Retail was not a World Cup winner, with many opting to cheer on England from the pub and prioritising their summer getaway, boosting hospitality and travel rather than retail sales. Consumers splashed out on fans and food for barbeques due to the heatwave, with many avoiding soaring temperatures on the high street."