Report Summary

Period covered: 1 June – 5 July 2025

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Online performance

Online retail sales rose by xx% year-on-year in June, bouncing back from a decline last month and an improvement on the xx% rise a year earlier.

Average weekly sales reached £xx billion, up from £2.29bn last June while penetration climbed to xx% of total retail sales, marginally ahead of last year’s xx% share.

Performance was supported by heatwave conditions, event-led purchasing and a subdued in-store experience for much of the month.

Where physical retail struggled with footfall volatility and weather disruption, online channels stepped in to meet convenience-led demand.

Key drivers and category performance

Heat as a traffic driver: The second-hottest June on record kept shoppers away from the high street on many days, pushing browsing and buying online. Retailers reported peaks during both heatwave spells, particularly in seasonal fashion, electricals and beauty.

Promotion-led conversion: Digital channels remained deal-heavy. Across clothing, home and beauty, online-only offers, limited-time sales and bundled incentives helped drive basket sizes and conversion. Retailers who led with speed, value and flexible delivery won the traffic.

Event timing: From Glastonbury to Wimbledon and Father’s Day, the June calendar gave online retailers clear hooks to trade against. Grooming kits, men’s fashion, travel accessories and gifting lines gained traction.

Click-and-collect lift: With temperatures rising, collection services saw increased usage as shoppers looked to avoid busy stores and secure availability during peak weather spells.

Macroeconomic backdrop

June’s economic picture was one of gradual improvement but clear constraints. Consumer confidence edged higher to –xx, but still firmly negative. People felt slightly better about their personal finances, yet most remained uneasy about the broader economy.

Headline inflation ticked up to xx% in June, driven by fuel and food. Key items such as meat, dairy and grains saw renewed pressure. Food price inflation hit xx%, with harvest issues and cost pressures in supply chains compounding the rise.

Wage growth outpaced inflation again, with average earnings up xx%, delivering small but real income gains for most households.

Interest rates were held at xx% in June, with markets pricing in two further cuts this year, one potentially as early as August.

Mortgage rates have started to ease, and housing affordability has marginally improved. The housing market appears to be stabilising after a flurry of activity in Q1.

Labour market signals softened. Unemployment nudged up to xx%, its highest level since mid-2021 while wage growth on a downwards trajectory, reaching its lowest level since mid-2022.

Households are not stretched to breaking point, but they’re still cautious. Spending is being weighed carefully against necessity, value and occasion.

Take out a FREE 30 day membership trial to read the full report.

Proportion of online retail sales by category