The latest figures from the Office for National Statistics (ONS) showed that retail sales volumes declined by -0.5% month-on-month in July, with the dip marginally deeper than economists had initially forecast.

Fewer clothing and online sales were behind the decline, with online retailers experiencing a fall of -3.6% on the month prior. Fashion revenues were also particularly impacted, dropping by -2.7% last month – the sharpest monthly decline since May of last year.

The UK heatwave was thought to have brought forward summer spending, reflective in the June ONS data when retail sales jumped +0.7%, boosted in part by retailers bringing forward discounts as well as brand promotions around the World Cup.

“The earlier timing of discounting and promotions meant that some large online and fashion retailers in particular pulled forward sales into June that would previously have been in July,” Jacqueline Windsor, PwC’s Head of Retail, explained.

Harvir Dhillon, Lead Economist at the British Retail Consortium (BRC), also pointed to consumers having brought forward summer spend, adding that “sustained high temperatures since May meant many consumers brought forward much of their summer spending earlier in the season.”

Consumer caution and engrained value-driven shopping behaviours also prompted more “selective spending”, according to Retail Economics’ Nicholas Found, with shoppers prioritising everyday luxuries, essentials and experiences.

“Promotions remain deeply embedded in shopping behaviour,” Found added, “showing consumers have not abandoned the value discipline built up through the cost-of-living crisis.”