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Sandra Halliday Published
July 21, 2025
UK retail sales volumes may have risen in June, official figures showed Friday, but with consumer confidence collapsing in July (according to another report on the same day), it’s likely that the higher sales figures might reverse over the next few months.
But for now, all we can do is look at the numbers so far. The Office for National Statistics said that retail sales volumes are estimated to have risen by 0.7% month on month in June 2025 with increases across all the main sectors (food, non-food and non-store retailing). The value of sales rose by the same amount.
Yeah on year however, volumes were down 1% while value sales rose 4.3%, highlighting the impact of inflation and showing that while overall sales values are increasing, they're not keeping up with inflation and volumes are suffering.
Looking at the quarterly picture, retail sales volumes rose by 0.4% in the three months to June 2025 compared with the three months to March 2025.
Month-on-month, non-food stores sales volumes rose by 1% in June, following a fall of 0.5% in May. Department stores and furniture retailers reported that summer sales and increased footfall helped boost volumes.
But clothing stores’ sales volumes fell by 0.4% month on month and were 1.5% below pre-Covid February 2025 levels. However, they did manage to rise compared to a year ago.
Non-store retailing sales volumes rose by 0.2% in June 2025, following a rise of 2.4% in May.
Looking specifically at online sales by value, month-on-month textile, clothing and footwear sales were down 5.9%, which may have been linked to clearance sale pricing. However, year on year, values were up 11.1%, which neats the current inflation figure.
Helen Dickinson, Chief Executive of the British Retail Consortium, highlighted how total clothing sales (store and online combined) rose compared to a year ago and how the onset of sunny weather provided a boost to sales last month. She added that “retailers are hopeful that consumer confidence will improve over the coming months as inflation eases. Falling inflation rates are a clear sign that competition is bringing down prices wherever cost pressures ease”.
Kelly Miely, retail partner at Deloitte, also focused on the uplift provided by warm weather, “as consumers devoted a larger share of their wallet towards discretionary items”.
Miles also emphasised the challenge for anyone not in the budget sector:”Even as inflation begins to fall, the changing economic landscape is not immediately influencing consumer behaviours. Many consumers continue to source cheaper products through discounting and value-ranges, as well as opting to shop at budget stores. Mid-market brands and retailers will therefore need to show the value and quality of their product ranges to encourage spending”.
And with consumer confidence weak, McKinsey’s Gizem Gunday said: “Underlying concerns remain. Nearly a third of UK consumers (32%) had to dip into savings to cover expenses, 21% used their credit card more often and 18% used a buy now pay later option. As retailers start to plan for the golden quarter, many will need to closely evaluate product, trend and shopper data to fine-tune retail strategies and identify where to make adjustments.”