Last month's hot weather benefited some retailers, but many customers preferred sunbathing to shopping.
July was a 'reasonable' month, with total sales up 5.5 per cent compared with last year and like-for-like sales up 2.6 per cent, according to the British Retail Consortium/KPMG Retail Sales Monitor.
In the three months to July, like-for-like sales growth fell to 2.4 per cent compared with 3.1 per cent for the three months to June. Total sales growth fell to 5.2 per cent in the three months to July, compared with 5.8 per cent over the same period to June.
Summer Sales and seasonal products, such as garden furniture, sandals and sunglasses proved tempting for consumers, but the clothing market overall slowed down.
There was strong growth in footwear - in particular coloured court shoes, thanks to recent fashion trends - and electrical products showed 'good growth'.
Meanwhile, the good weather helped the food and drink sector, which saw similar trends in June. 'With predictions of more hot weather to come, food retailers are stocking up on more of the big selling lines,' said KPMG head of retail Amanda Aldridge.
Department stores enjoyed a 'good month', and there was an improving trend in home accessories.
BRC director general Bill Moyes said: 'A detailed examination of the pattern of sales demonstrates that growth is not being driven by unsustainable levels of personal debt.'
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