Report Summary

Period covered: 06 July – 02 August 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 xx% YoY in July, after a xx% rise a year ago. Average weekly sales reached £xxm, up from £xxm while online share of total retail sales climbed to xx%, compared with xx% in July 2024.

Four categories posted growth. Clothing & Footwear (+xx%) and Food (+xx%) led the way, with Department Stores (+xx%) also in strong territory. Household Goods    (-xx%) contracted again, though losses were lighter than last summer.

Key drivers and category performance

Weather as a trigger: The UK recorded a mean temperature of xx°C, xx°C above the long-term average, making it provisionally the fifth warmest July on record. The sweltering start to July boosted food, fashion, and cooling products online, before cooler, stormier weather cut momentum.

Event-led demand: The Lionesses’ Euro 2025 triumph, Wimbledon and summer festivals lifted sportswear, occasion fashion, suncare, and travel accessories.

Mid-month discounting: Online deal cycles clustered around Amazon Prime Day, pulling sales into a narrow window where retailers fought heavily on price.

Record Amazon Prime Day

Amazon Prime Day 2025 delivered record UK sales of £xx billion, up xx% on last year, according to Adobe Digital Insights. Day one alone generated £xx million, the biggest e-commerce day of the year to date. Notably, the strongest conversion rates and basket sizes came later in the four-day event, signalling a shift towards more deliberate, value-focused shopping rather than an early rush.

Category shifts were also evident, with spend on higher-priced household goods and appliances up by around a third compared with typical levels, showing consumers prioritising big-ticket items where savings are more meaningful. Shoppers were also more likely to browse on desktops and laptops than mobile, suggesting a research-led path to purchase.

Macroeconomic backdrop

July’s trading took place against a mixed economic backdrop. Consumer confidence slipped to -xx on GfK’s index, as economic sentiment weakened, though household finances held steadier. Saving intent hit its highest since 2007, underscoring ongoing caution amid speculation of tax rises in the Autumn Budget.

Inflation edged up to xx%, with food inflation accelerating to xx%. Travel costs, particularly airfares, were the main driver, while services inflation in meals, leisure and hotels kept pressure high despite softer energy and fuel prices. Core inflation stayed sticky at xx%, limiting the pace of disinflation. The labour market softened, with unemployment rising to xx%, the highest in four years. Yet wage growth continues to outpace inflation, giving many households small real income gains, though credit use is rising for others.

Monetary policy shifted in August as the Bank of England cut rates to xx%, easing mortgage costs and stabilising housing sentiment. House prices returned to modest annual growth, while retail still felt the drag of expensive credit and tight budgets, even as lower borrowing costs hint at more scope for discretionary spending later in the year.

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Proportion of online retail sales by category