UK Retail Sales Climb 0.9% MoM in June 2025, Boosted by Online Spending and Clothing Sales
The United Kingdom’s retail sector showed signs of a strong rebound in June 2025, with retail sales volumes increasing by an estimated 0.9% month-on-month (MoM) and 1.7% year-on-year (YoY), according to data released by the Office for National Statistics (ONS). This upswing comes after a sharp 2.8% MoM decline in May, indicating renewed consumer activity and stabilization in the retail economy.
For the second quarter of 2025, retail sales volumes edged up 0.2% quarter-on-quarter (QoQ) and 1.8% YoY, highlighting consistent but moderate growth across the period.
Online Spending Surges Ahead
A significant driver behind the June performance was a notable increase in online transactions. Online spending values jumped by 2.3% MoM and 4.5% YoY, as more consumers turned to digital platforms. On a quarterly basis, online spending rose by 3.3% in Q2 2025, reinforcing the structural shift in consumer behavior post-pandemic.
This growth in online purchases pushed the proportion of online retail sales up from 27.4% in May to 27.8% in June, underscoring e-commerce’s expanding share of the retail market.
Category-wise Breakdown:
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Non-store retailers (including online-only businesses) saw a 1.7% rise in sales volumes, marking their highest performance since February 2022.
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Non-food stores recorded a modest 0.2% MoM increase, with gains particularly seen in department stores and clothing retailers, signaling seasonal buying and possibly promotional effects.
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Total spending, combining both in-store and online sales, rose 1.1% MoM, indicating broader retail resilience.
Despite these gains, retail sales volumes in June 2025 were still 1.6% below their pre-COVID-19 level in February 2020, suggesting a full recovery is still in progress.
Looking Ahead
The June rebound, particularly in online and fashion retail, reflects improved consumer sentiment and seasonal tailwinds. However, continued economic pressures such as inflation and cautious consumer spending may temper future growth.
With e-commerce leading the charge and select in-store categories gaining traction, the UK’s retail sector is showing signs of adaptability and gradual recover.
