Retail sales volumes rose by 1.0% in June 2026, and 0.6% for Q2 2026, according to the latest ONS data. Online sales performed particularly strongly, with a 2.8% increase in June – an increase of 14.4% year on year – and a 3.8% increase for the quarter. Online growth took place across most sectors.
The proportion of online sales rose from 28.9% in May 2026 to 29.4% in June 2026, the highest proportion since April 2021.
The ONS reports that the retail growth was due to sales promotions and the warm weather boosting sales of outdoor products as well as heat-beating equipment such as fans. The online sector benefitted from increased clothing and sports merchandise sales.
“Good news” for retailers
Deann Evans, managing director, EMEA, at Shopify, described the second month of sales growth as “good news”, echoing the ONS findings that much of the growth was driven by the heatwave. “According to Shopify merchant data, tower fans, cooling beds and split-system air conditioners all rose by more than 300% last month compared to May. The sunny weather also boosted outdoor leisure, with significant rises across paddle ball sets (372.5%), swim trunks (54.3%) and inflatable spas (48.9%) compared month-on-month,” she said.
World Cup fever also had a strong impact on retail. “Sales of footballs rose nearly 200% year-on-year, with replica jerseys close behind on 139% and flags on 104%. Fans even brought the stadium home for watch parties with televisions rising 108%, multimedia projectors 66.5%, and party supply kits 49.3%,” Evans reported.
However, Joe Squire, consumer expert and marketing director at point-of-sale services provider Epos Now, pointed out that increased sales can put pressure on day-to-day operations. “Businesses need to ensure they have the right stock available, sufficient staffing in place, and the flexibility to respond quickly to shifts in customer demand,” he said. “As retailers look to build on this momentum, understanding what’s driving sales is essential.”
What could help retail more
Despite the boost in consumer confidence, retail industry figures say the government still needs to do more to support the sector. “With rising employment costs, inflationary pressures and retail crime continuing to squeeze profitability, more needs to be done to stimulate investment and retail sector growth,” said Neil Sutton, CRO at Everseen. “Andy Burnham has pledged to make Britain’s high streets a symbol of national renewal, but that ambition must be backed by meaningful action.”
Nicholas Found, head of commercial content at Retail Economics, shared this view. “The new Prime Minister is rightly trying to show progress on the cost of living, but retailers are still absorbing wage, energy and supply-chain pressures of their own,” he said. “This cannot be overlooked. June trading may have been helped by sunshine and sport, but sustaining growth through the second half will require more structural support.”
Erin Brookes, European retail and consumer lead at Alvarez & Marsal, also echoed this call. “With a new Prime Minister now in place, retailers will be looking for early signals that the government is prepared to back the sector through reforms that reduce the cost of doing business, including addressing business rates and reducing the cost of employing young people,” she said. “As consumers remain selective in their spending, retailers will need the confidence to invest, create jobs and continue delivering value.”
Although the increased consumer confidence is undoubtedly welcome, it is clear that online retailers cannot afford to rest on their laurels. With political volatility in the Middle East, ongoing pressure on supply chains, and the prospect of rising energy bills likely to squeeze household finances, retailers will need to remain agile and resilient in order to maintain the momentum of the last two months. And with a new Prime Minister in Number 10, it remains to be seen whether a ‘Burnham bounce’ will help boost the sector.
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