UK retail sales softened in July following a strong June, but the latest figures show a more encouraging underlying picture for household goods and non-store retail, with both sectors continuing to outperform the wider market.
The latest figures from the Office for National Statistics (ONS) show that total UK retail sales volumes fell 0.5% in July compared with June. However, sales remained 1.6% higher than July 2025, while volumes across the latest three months were 3.0% above the same period last year.
For sectors particularly relevant to BHETA members, the picture was stronger.
Household goods remain well ahead of 2025
Household Goods Stores saw sales volumes fall 1.9% between June and July, following particularly strong trading during May and June. Despite the monthly decline, July volumes remained 3.7% higher than July 2025.
Looking at the broader three-month picture, performance was even more positive. Household Goods Stores volumes between May and July were 7.3% higher than the same period in 2025, more than twice the growth recorded across total retail.
The longer-term trend also remains encouraging, with household goods sales volumes higher than the equivalent month a year earlier in 11 of the 12 months from August 2025 to July 2026.
The July decline followed particularly strong trading in the previous two months, with the ONS noting that some furniture retailers experienced lower demand for certain products during the hot weather.
For context, the ONS Household Goods Stores category covers retailers selling products including furniture and lighting, electrical household appliances, hardware, paints and glass, and music and video equipment.
Non-store retail continues to deliver strong growth
Non-store Retailing recorded an even stronger year-on-year performance. While sales volumes fell 3.6% in July compared with June, they remained 5.9% higher than July 2025.
Across the latest three months, non-store retail volumes were 5.9% higher than the previous three months and 9.0% above the same period in 2025. The ONS index shows that the category has remained ahead year-on-year throughout the latest 12-month period.
The July decline partly reflected promotional activity taking place earlier in June, bringing some consumer demand forward. Strong trading in May and June was also supported by promotions, sports merchandise and hot-weather demand for products such as fans.
The ONS defines non-store retailing as retailers operating without a physical store presence. While the majority are online retailers, the category also includes businesses such as street stalls and markets.
Online sales remain an important part of the picture
Online retail also continued to show year-on-year growth. Online spending fell 3.9% in July compared with June, but remained 6.5% higher than July 2025.
Across the latest three months, online spending was 11.0% higher than the corresponding period last year, while online sales accounted for 28.3% of total retail sales in July, compared with 29.2% in June.
It is worth noting that online sales and non-store retailing are not the same measure. The ONS separately tracks online sales made by retailers across all retail sectors, meaning the figures provide a broader view of the continued importance of digital shopping.
A stronger underlying picture for BHETA sectors
The July figures highlight the importance of looking beyond month-on-month changes when assessing the health of the retail market.
While July was softer following a particularly strong June, the year-on-year figures point to continued growth. Household goods and non-store retailing are both performing ahead of the wider retail market, with the latest three-month figures showing:
- Total Retail: +3.0% year-on-year
- Household Goods Stores: +7.3%
- Non-store Retailing: +9.0%
Overall, the latest data points to a retail market experiencing some short-term monthly volatility, but with household goods and non-store channels continuing to trade materially ahead of their 2025 levels.
Source: Office for National Statistics, Retail sales, Great Britain: July 2026 and Retail Sales Index, released 21 August 2026.
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