UK Retail: Heatwave Lifts Clothing Sales, Momentum Slows

Industry Insights from Next Move Strategy Consulting

In July, British consumer spending rose, driven initially by unseasonably warm weather that lifted clothing sales, though demand eased later as temperatures fell and part of the gain was linked to higher food prices.

Heatwave Energises Clothing Sales

During early July, unseasonably warm temperatures spurred a marked increase in clothing purchases, with Barclays reporting a 4.2% year-over-year rise in clothing sales—its sharpest gain since September last year. The heatwave also lifted overall consumer spending by 1.4% compared with a 0.1% decline in June.

Elevated Spending Reflects Rising Costs

The British Retail Consortium (BRC) noted total consumer spending was 2.5% higher in cash terms compared to July last year, though this growth was slower than June’s 3.1% increase. The BRC highlighted that food sales rose by 3.9%, substantially higher than the 1.4% increase seen in other goods.

Warm July Boosts Clothing Sales, but Economic Caution Persists

July ranked as the fifth-warmest since records began in 1884, according to the UK Met Office—an environment that clearly encouraged clothing sales. Economists are monitoring whether households will draw on their substantial savings to maintain spending amid job losses and slowing wage growth. Last week, Bank of England Governor Andrew Bailey noted that consumers have been more cautious than the central bank anticipated.

Summary Table

Factor	Insight
Clothing Sales	Spiked 4.2% YoY — biggest rise since Sept, driven by early-July heatwave
Overall Spending	Up 2.5% YoY; slower than June’s 3.1% pace
Food vs Other Goods Spending	Food up 3.9%, non-food up 1.4% — indicates inflation pressure