Beauty and summer essentials drive spending as UK retail feels the heat

Consumer demand for smaller indulgences such as beauty products was one bright spot for retailers in July, as the relentless heat took its toll, figures show.

Total retail sales across the UK were up 1.3% year-on-year last month, below the 12-month average of 1.8%, according to data from the British Retail Consortium (BRC) and KPMG.

England’s progress to the semi-finals of the World Cup helped drive a 3.8% increase in food sales, above the 12-month average of 3.4%.

However, non-food sales were down 0.7% on last July as shoppers avoided the heat of the high street.

Clothing boosted sales, driven by demand for affordable summer essentials, while shoppers also prioritised smaller indulgences such as beauty products and fashion jewellery but delayed bigger-ticket purchases including furniture and computing.

BRC Chief Executive Helen Dickinson said: “Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year.

“Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs.”

Separate figures from Barclays show consumer card spending grew by 2% year-on-year in July, up from 1.9% in June, with England’s run at the World Cup, the July heatwave and recovering consumer confidence all contributing to the uplift.

Rohan Kumar, Head of Spend Insights at Barclays, said: “Card spending strengthened further in July, reaching its highest level for 12 months, with both essential and non-essential spend remaining in growth.

“Multiple factors played a part, with UK staycations, continued warm weather and England’s World Cup run lifting spending on travel, hospitality, everyday essentials and seasonal retail categories.”