Online retail sales in the UK continued to grow in June 2025, while high street sales remained flat, according to the latest High Street Sales Tracker from BDO. The data shows a +4.3% year-on-year increase in online sales, compared to a minimal +0.6% rise for physical stores.
Fashion performed strongly online, with sales up 10%, contrasting with a -0.2% decline in brick-and-mortar fashion sales. The gap reflects a broader trend in consumer behaviour, with in-store sales marking their sixth consecutive month of growth below inflation—indicating lower overall sales volumes.
Discretionary spending categories such as fashion, homewares, and lifestyle remained weak overall. Sophie Michael, head of retail and wholesale at BDO, cited rising job losses, inflationary pressure, and global instability as contributing factors behind cautious consumer spending.
Michael also highlighted the need for physical retailers to adapt through strategic investment in stores and integration with online channels. Without intervention and support, she warned, more store closures could impact local communities and high streets across the UK.
