June heatwave dents footfall but fails to derail UK retail sales

UK retail sales remained resilient in June despite a heatwave that reduced footfall and hurt in-store shopping. According to BRC and KPMG, total retail sales rose 1.9% year on year, matching the average pace over the past year but slowing from 3.1% in June 2025. Non-food sales increased 1.2%, while physical-store non-food sales fell 1.1% as high street visits dropped 6.2% and shopping-centre footfall declined 2.5%. Online non-food sales rose 5.1%, lifting the online share of non-food purchases to 39.0%, the highest of 2026. The report suggests consumer demand held up, but weather shifted spending online and pressured store operations. For UK retailers, the data is supportive but mixed: sales growth continues, yet margin pressure from heat-related operating challenges, business rates, and labor costs remains a concern.