Rising retail sales in July not enough to fend off job losses, store closures - BRC
By Michele Maatouk
Date: Tuesday 12 Aug 2025
(Sharecast News) - Industry data released on Tuesday showed that rising sales were not enough to fend off job losses and store closures in July.
According to the latest figures from the British Retail Consortium and KPMG, total retail sales rose 2.5% year-on-year last month, up from 0.5% growth in July 2024.
Meanwhile, food sales were up 3.9% in July following 3.3% growth in the same month a year earlier.
Non-food sales rose 1.4% year-on-year, against a decline of 1.8% in July 2024, while in-store non-food sales were up 1.9%, versus a 3% drop in the same month a year earlier.
Online non-food sales ticked up 0.3% last month, following 0.3% growth in July.
The online penetration rate - the proportion of non-food items bought online - fell to 34.8% last month from 35.1% in July 2024. This was below the 12-month average of 36.7%.
BRC chief executive Helen Dickinson said food sales did well in early July thanks to warm weather and a packed sporting schedule, but this momentum failed to hold for the rest of the month.
"Rising food inflation meant increased spending was more a result of higher prices than improved demand," she said.
"Fashion sold well early in the month, but deteriorated as weather worsened, while homeware and indoor furniture grew steadily, recovering from the previous year's decline. Gaming and toys sold particularly well, as nostalgic adults purchased products like Lego.
"With sales growth at these levels, it is barely touching the sides of covering the £7bn new costs imposed on retailers at the last Budget. If the upcoming Autumn Budget sees more taxes levied on retailers' shoulders many will be forced to make difficult choices about the future of shops and jobs, and ongoing pressure would push prices higher. Ultimately, this means more families struggling, particularly those on lower incomes, reduced consumer spending and a drag on economic growth."
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