Total retail revenues put on modest positive growth in July as hot weather continued to supress sales, according to the latest BRC-KPMG Retail Sales Monitor.

Data spanning the four weeks between 05 Jul – 01 Aug 2026 showed that total retail sales grew +1.3% year-on-year, below the 12-month average of 1.8%.

Food sales increased by +3.8% compared to 2025, bolstered by the FIFA World Cup as consumers held ‘watch parties’ and hosted at home during the tournament. Non-food sales struggled, dipping -0.7% year-on-year, up up against the 12-month average of 0.4%.

“Despite summer season getting started as early as May, the upturn for clothes, shoes and accessories has continued right through to August,” Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, commented.

“The prolonged warm weather has also aided home entertaining and garden related purchases and, coupled with England’s progress to the tail-end of the World Cup, brought a boost to food and drink sales in July.”

“Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year,” said Helen Dickinson, Chief Executive of the British Retail Consortium. “Household budgets remain stretched, consumer confidence is fragile and retailers continue to grapple with rising operating costs.”

This caution means spending hesitancy and price-consciousness will continue to play on consumers minds, Sarah Bradbury, CEO, of IGD, explained.

“While shoppers are feeling more positive than earlier in the year, many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions.”

“Despite this month’s improvement, pressures are building across the food supply chain as a result of the conflict in the Middle East and prolonged hot weather, increasing the likelihood of higher food costs and renewed pressure on household budgets as we move into the Autumn,” Bradbury concluded.