UK retail sales fell 0.5 per cent in July as the prolonged heatwave and an earlier start to summer promotions impacted fashion and non-food spending.

The drop followed a revised 0.7 per cent increase in June, when warm weather, discounting and the World Cup helped drive shoppers to stores and online, according to the Office for National Statistics.

Food retailers proved more resilient, with supermarket sales increasing as the hot weather and the World Cup boosted demand.

Alcohol and drinks retailers also performed strongly, helped by promotions, warmer conditions and the football tournament.

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Despite July’s decline, the wider picture remained positive, with retail sales volumes rising 1.1 per cent in the three months to July compared with the previous three-month period and three per cent against the same period last year.

ONS chief economist Grant Fitzner said sales had grown across almost every major retail category over the latest three months, with hot weather helping demand for outdoor goods, fans, clothing and online sports merchandise.

Sales volumes were still 1.6 per cent higher than July last year, although growth came in below economists’ expectations.

Non-food sales dropped 1.3 per cent during the month, with clothing retailers among those reporting weaker trading.

The figures come as consumer confidence shows signs of improving, with GfK’s closely watched index climbing to a two-year high in August, although retailers continue to face pressure from higher household energy costs and inflation.

The mixed backdrop has already been reflected across the sector, with Next recently lifting its full-year profit forecast following stronger warm-weather trading, while JD Sports issued a profit warning amid weaker performance in its US business.