U.K. total retail sales increased 3.9 percent in May, against a decline of 1.1 percent in May 2022; this is below the 3-month average growth of 4.7 percent and above the 12-month average growth of 3.4 percent.
U.K. comp store (like-for-like) retail sales increased 3.7 percent in May, against a decline of 1.5 percent in May 2022; this was below the 3-month average growth of 4.6 percent and above the 12-month average growth of 3.1 percent.
Non-Food sales increased 0.7 percent on a total basis and 0.5 percent on a like-for-like basis over the three months through May, above the 12-month total average growth of 0.5 percent. For the month of May, Non-Food was in growth year-on-year.
“The trio of bank holidays failed to get shoppers spending as sales growth slowed to its lowest level in six months,” said Helen Dickinson OBE, chief executive of the British Retail Consortium (BRC). “While food sales got a boost from the Coronation weekend, this was not sustained for the rest of the month. Meanwhile, growth in discretionary spend continued to tumble as the high cost of living squeezed households. There was cause for some optimism; however, as brighter weather at the end of the month led to a much-needed pick-up in summer fashion sales, as well as gardening and DIY products.”
Paul Martin, U.K. Head of Retail, KPMG, shared his firm’s thoughts on the May results, stating, “High street retailers saw more categories slip into negative sales territory last month, with health, beauty and food driving sales on the high street. The gloom continued for online retailers, with just four categories registering positive sales figures and total sales down by 3 percent. Online penetration rates continued to slide, sitting at 36 percent, as consumers return to bargain hunting in store.”
Over the three months through May, In-store Non-Food sales increased 2.9 percent on a total basis and 2.2 percent on a like-for-like basis since May 2022. This is below the total 12-month average growth of 3.7 percent. Online Non-Food sales decreased 3.0 percent in May, against a decline of 8.5 percent in May 2022; this is steeper than the 3-month average decline of 2.8 percent and shallower than the 12-month decline of 4.0 percent.
The proportion of Non-Food items bought online (penetration rate) decreased to 36.3 percent in May from 37.1 percent in May 2022.
“With consumer confidence still recovering from record depths and continued tightening of household incomes, we are unlikely to see substantial sales growth in the coming months,” Dickinson concluded. “But, with signs that inflation has possibly peaked, retailers are hopeful that confidence will continue to improve. Now is not the time for Government to impose more regulation and tax on business that will push up costs for retailers and prices for their customers.”
