UK Retail Sales Experience Modest Uptick in May

In the four-week period from April 28 to May 25, the UK saw a slight increase in total retail sales, rising by 0.7 percent year-on-year. This modest growth comes in stark contrast to the 3.9 percent growth experienced during the same period last year.

Although the figures exceeded the three-month average growth rate of 0.3 percent, they still fell short of the 12-month average growth rate of 2 percent. A closer look reveals that while food sales surged, non-food sales suffered a significant decline.

Non-food sales dropped by 2.4 percent over the three months leading to May, a more considerable dip compared to the 12-month average decline of 1.7 percent. The disparity between in-store and online sales was also notable in this category. Physical store sales decreased by 2.7 percent year-on-year, compared to a 2.9 percent growth in May of the previous year. Conversely, online sales saw a 1.5 percent increase, reversing the trend of an average decline of 3 percent.

Helen Dickinson, CEO of the British Retail Consortium (BRC), which released the data, commented on the performance, highlighting that the “modest rebound” occurred despite a “strong bank holiday weekend for retailers” and “minimal improvement to weather.” She emphasized the importance of the upcoming election, stating, “With an election only four weeks away, retailers stand ready to collaborate with the next government to unlock economic potential, benefiting customers, colleagues, and communities alike.”

Dickinson also stressed the need for better policy coordination, saying, “Cross government co-ordination and outcome-driven policy making must no longer be an afterthought in government decision making. Retail really is the ‘everywhere economy’, and with the right policy environment can use its scale and reach to support public policy goals.”

Overall, while the retail sector saw a slight improvement in sales for May, the mixed performance between food and non-food sales, as well as the varying trends in in-store and online purchases, highlights the ongoing challenges facing the industry. Retailers remain hopeful that a supportive policy framework from the next government will help drive further growth and stability.