RETAIL SALES IN GREAT BRITAIN FALL 0.5% IN JULY

The volume of goods sold in stores and online across Great Britain fell 0.5% in July, according to official figures from the Office for National Statistics. The decline marked a reversal from a 0.7% rise in June and a 1.3% rise in May. Non-food retail suffered the largest contraction, falling 1.3%, driven by reduced clothes shopping as retailers had moved discount sales into June ahead of July's record temperatures.

Extreme heat in July appears to have dampened footfall on high streets, with consumers shifting spending online or towards retail parks, and fewer households purchasing furniture during the period of intense weather. Department stores also experienced declining sales due to reduced available stock, as retailers faced extended delivery times during the heatwaves. Food and drink sales provided a bright spot, however, with hot weather and the men's football World Cup generating increased demand in that category, though the overall gain was moderated by pubs and sports bars drawing customers away from retail environments to watch matches.

Sandra Prince, head of consumer at Lloyds, said retailers would now focus on autumn opportunities to maintain consumer engagement. The British Beer & Pub Association reported that the World Cup and extended opening hours in pubs boosted the hospitality sector, with pubs selling an estimated 30 million additional pints during the tournament compared with a normal trading period. The ONS figures also included a revision downward of June's initial estimate from 1% to 0.7%.