Positive news first. Total UK retail sales increased by 2.5% year on year in July (06 July-2 August), against growth of just 0.5% seen in July 2024, and above the 12-month average growth of 1.9%. That’s according to the monthly KPMG/BRC Sales Monitor.

Then there’s upbeat news for fashion and beauty, with Barclays Consumer Spend figures also showing clothing performed strongly last month, up 4.2%, boosted by some fine summer weather, contributing to an agreed-on 1.9% average growth in retail sales.

That was clothing’s greatest increase since September 2024 and comes as 16% of UK adults said they bought more summer clothes and accessories in July, while 26% said July’s changeable weather impacted their spending decisions.

Back at BRC/KPMG, it said non-food sales increased by 1.4% year on year in July, against a decline of 1.8% in July 2024. This was above the 12-month average growth of 0.8%.

In-store non-food sales increased 1.9%, against a decline of 3% in July 2024 and above the 12-month average growth of 0.2%.

It also said online non-food sales increased 0.3%, against growth of 0.3% in July 2024. This was below the 12-month average growth of 1.9%.

According to Barclays, that rise in clothing sales was bettered by beauty, pharmacy & healthcare which “performed strongly”, up 9.8%, “continuing to benefit from the enduring post-Covid ‘lipstick effect’, where shoppers turn to small and affordable luxuries to boost their mood”, it explained. 

It also confirmed online retail spending (excluding groceries) grew too by 4.9%, up from 2.4% in June as shoppers made the most of discounted items and sales events, including special offers such as Prime Day (8-11 July).

And the less positive news? Overall retail sales increase last month was mostly driven by food, drink and home appliances sales while the lift in sales “isn’t enough to fend off job losses and store closures”, stressed the BRC.

Barclays also said confidence in the strength of the UK economy dipped once again in July, falling three points month-on-month to 22%, the lowest level seen since January (21%), having reached a 2025-peak in May, at 28%. 

Despite this, consumers “remain confident in their ability to live within their means”. This measure almost held firm at 75%, just one point below the 76% recorded in June. Confidence in household finances also stabilised at 72%, down only marginally from 73% in June, which was a four-month high.

Karen Johnson, head of Retail at Barclays, said: “The summer sales, changeable weather and shoppers seeking the ‘feel-good factor’ led to a strong July for retailers, particularly among beauty, clothing and furniture stores.

“While confidence in the UK economy remains subdued, prudent money management, supported by the growing popularity of [artificial intelligence] AI tools to help with budgeting is contributing to a continued resilience in personal and household finances.”

British Retail Consortium chief executive Helen Dickinson also said: “Fashion sold well early in the month, but deteriorated as weather worsened.”