UK online retail sales fall as July spending eases

Online retail sales values in Britain fell 3.9% in July, according to Office for National Statistics figures. Non-store retail sales volumes, a category dominated by internet sellers, also dropped 3.6% over the month.

The decline followed stronger online trading in May and June, when retailers brought summer promotions forward and hot weather lifted demand for seasonal goods.

Overall retail sales volumes rose 1.1% in the three months to July compared with the three months to April, official data showed. In July alone, total retail sales volumes fell 0.5% after a 0.7% rise in June.

Non-store retailers made the largest negative contribution to that monthly result, suggesting online spending eased after a stronger period earlier in the summer.

Online spending values, which measure how much consumers spent online, rose 3% in the three months to July from the previous three-month period. They were also 11% higher than in the same period a year earlier.

Despite the monthly fall, July online sales values remained above year-earlier levels. Spending online in July was 6.5% higher than in the same month last year.

Online's share of total retail spending also edged lower, slipping to 28.3% in July from 29.2% in June.

Parcelhero said the pattern reflected spending being pulled into earlier months rather than a broad weakening in online demand. Retailers that launched promotions sooner than usual benefited in May and June at the expense of July trading, it said.

David Jinks, Head of Consumer Research at Parcelhero, said: "The ONS figures confirm what many online retailers have been telling us anecdotally: this was a tale of two halves. Non-store retailers' sales volumes surged in May and June, as the hottest spells of the year sent shoppers rushing online for fans, garden furniture, sports kit and summer clothing, while early promotional activity dragged even more spending forward into that period.

"By the time July arrived, much of that appetite had already been satisfied. The ONS is clear that non-store retailers' sales volumes fell back over the month, and it puts this down to promotions happening earlier than usual in June. Crucially, though, volumes remained above where they were in May, so this isn't a concerning collapse in online shopping - it's a hangover after a promotional and weather-driven binge.

"The data on online retail values tells a similar story. Online spending values - the amount we all spent online - rose by 3% in the three months to July 2026 compared with the three months to April, and were up 11% on the same three months a year earlier - a robust annual performance. However, online sales values fell 3.9% in July, reversing a 2.5% increase in June, even though they were still 6.5% higher than in July 2025.

"As a result, the proportion of all retail spending made online slipped from 29.2% in June to 28.3% in July.

"It's the annual comparisons that really matter here, and they are considerably stronger: online values are up 11% on the three months to last July, and July's monthly online spend was still 6.5% higher than the same month last year. E-commerce is not going backwards; it's simply adjusting to earlier summer promotions.

"For online retailers and the couriers and delivery firms that serve them, the message from these figures is to expect exactly this kind of lumpiness around hot weather and promotional calendars. Looking ahead, with online's three-month growth trend still comfortably outpacing the high street, and annual online value growth in double digits, we expect eCommerce to bounce back as retailers roll out fresh promotions again in the run-up to autumn and the key pre-Christmas shopping season.

"For retailers, the message is clear: those who can scale their fulfilment and delivery operations up and down quickly, rather than being caught flat-footed by a heatwave or a big sporting event, stand to gain the most."

The latest figures point to a softer month for internet-led retail after a stronger start to the summer. They also show that, on both a three-month and annual basis, online spending remains above last year's levels.

Heat-related purchases and discounting appear to have shaped the timing of sales. Parcelhero said products such as fans, garden furniture, sports goods and summer clothing saw stronger demand during the hotter weeks.

The data adds to a broader picture of uneven consumer spending patterns, with promotions and weather continuing to influence when households choose to buy. For retailers, July's decline in online activity came alongside a modest fall in overall retail volumes.

Online's reduced share of total retail spending in July suggests some retrenchment after June's higher level. Even so, more than a quarter of all retail spending still took place online during the month.

Parcelhero also argued that businesses with both store and digital channels are better placed to manage demand volatility.

Online spending values were 11% higher over the past three months than in the same period a year earlier, while July spending remained 6.5% above the level recorded in the same month last year.