Food sales jump with World Cup boost

Food sales rose 3.8% in July, boosted by the World Cup and the summer heatwave, according to the latest BRC-KPMG retail sales monitor data.
While the rate was slower than June’s 3.9%, food was the winner as shoppers cut back on their trips to the store amid continued record temperatures.
Non-food sales, on the other hand, fell by 0.7% year on year between 5 July and 1 August.
In-store non-food sales fell by 1.9%, reversing the same growth the previous month. Those who were spending on “smaller indulgences” like beauty and clothing increasingly did so online, with the proportion of non-food items bought online increasing to 35.9%, from 35.4%.
Overall, retail sales were up 1.3% during the four weeks, against 2.5% growth in the previous period.
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“July saw modest sales growth, with food sales boosted by the final week of the World Cup,” said BRC CEO Helen Dickinson.
Dickinson noted that non-food sales were hit by the decline in footfall as shoppers avoided the heat. Clothing was a bright spot, driven by demand for affordable summer essentials, while footwear struggled to keep up.
Shoppers also prioritised smaller indulgences such as beauty products and fashion jewellery, while delaying bigger-ticket purchases including furniture and computing.
Shops have struggled to cope with consecutive weeks of heatwaves that have bathed most of Europe, and pushed temperatures up to beyond 35 degrees.
Multiple stores have reported fridge breakdowns. Meanwhile, farmers and politicians have warned the country faces potential food shortages unless more is done to prepare crops and water infrastructure amid continued droughts.
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Consumer sentiment was also being affected, Dickinson said. “Consumer demand has struggled in the heat, leaving retailers facing a challenging start to the second half of the year. Household budgets remain stretched, consumer confidence is fragile, and retailers continue to grapple with rising operating costs,” she said.
While many were still spending cautiously, England’s participation deep into the World Cup had brought a “welcome uplift in shopper confidence”, said IGD CEO Sarah Bradbury.
Bradbury noted that easing inflation, a new government, continued warm weather and England’s World Cup run helped boost sentiment, with sales and volumes increasing compared to July 2025.
However, while shoppers are feeling more positive than earlier in the year, many households remain mindful of their budgets, meaning value continues to play a central role in purchasing decisions, Bradbury warned.
Despite this month’s improvement, pressures are building across the food supply chain as a result of the conflict in the Middle East and prolonged hot weather, increasing the likelihood of higher food costs and renewed pressure on household budgets as we move into the autumn.