Retail Sales Surge, Consumers Fueling a Boom

June 2025 Retail Review: Heat, Fans & Slight Cool‑Down

Between June 1 and July 5, the UK’s retail sales surged 3.1 % y/y in June, a far cry from a modest ‑0.2 % y/y dip in the same month the previous year. It’s like the summer heat just spurred shoppers to grab what they love.

What’s Driving the Surge?

Food sales — 4.1 % increase (vs. 1.8 % last year)
Non‑food sales — 2.2 % increase (vs. ‑1.9 % last year)
In‑store non‑food — 2.2 % increase (vs. ‑2.6 % last year)
Online non‑food — 2.3 % increase (vs. ‑0.7 % last year)

Online penetration for non‑food items sits at a steady 36.6 % – almost unchanged from last June – slightly below the 12‑month average of 36.8 %.

Industry Voices

Helen Dickinson, Chief Executive of the British Retail Consortium, cheered:

“Retail sales heated up in June, with both food and non‑food performing well. The soaring temperatures lifted electric fan sales, while sports and leisure gear got a boost from the summer crush and Wimbledon’s kickoff. Food sales stayed strong, partly thanks to the rising food inflation that’s been ticking up all year.”

She added a cautious note:

“Retailers are keeping an eye on the Government for the upcoming business rates reform. If shops fall into a higher rate bracket, many will have to rethink investment plans. That could mean bigger store closures, hurting local communities with fewer jobs and less footfall. If we want to revitalize high streets, the new rates must not bite the shops that keep those streets alive.”

Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, highlights:

“Home appliances and homeware fueled a June boost – new homeowners and curious renovators took advantage of summer promos both in‑store and online. Warm weather and the early holiday buzz gave modest lift to clothing sales. Retailers hope the buying spree is far from over, expecting a pick‑up in July and August as people pack up and the sun keeps shining.”

Sarah Bradbury, CEO of IGD, comments on the food & drink sector:

“Shoppers’ confidence dipped to just 1, still a sliver above zero. Global tension and economic pressure have left shoppers a bit on edge. Food‑price worry jumps from 14 % to 20 % this month, flaring inflation anxieties. Value sales keep seeing inflation-driven volume pressure. Yet new summer ranges and better weather give retailers a chance to tap new moments—especially for higher‑income shoppers who still chase quality.”