UK: Retail sales take a hit in May as consumers cut back spending

New figures by the Office for National Statistics (ONS) have shown a drop of 2.7 percent in retail sales volumes during May, representing the largest monthly fall since December 2023.

The decrease comes after a more promising April, in which volumes rose 1.2 percent. Sales were also down by 2.7 percent compared with pre-Covid levels in February 2020, and thus reached their lowest level since December 2024.

In contrast, over the three months to May, volumes increased marginally by 0.8 percent when compared with the three months to February 2025. When compared to the same period last year, sales were up 1.7 percent.

While food sales took the largest hit at 5 percent, non-food stores saw sales volumes drop by 1.4 percent over the month, mainly due to a decline in clothing and household goods sales. Textile clothing and footwear stores reported a decrease in sales volumes of almost 2 percent.

This was even more significant online, where monthly sales dropped by just over 3 percent for such stores. This was compared to an overall 1 percent drop in online spending values over the month to May 2025.

In a statement to FashionUnited, Matt Jeffers, MD, retail strategy and consulting at Accenture, said “retail sales suffered as consumers continued to feel the squeeze from rising household bills and an extended period of cost-of-living pressure”.

Jeffers continued: “While improving consumer confidence offered a glimmer of hope, that sentiment didn’t translate into spending and sales were the lowest in months, with food hit particularly hard. Fashion, household goods and big-ticket purchases all saw weaker performance, with many households opting to cut back or trade down.

“Some of May’s softness likely reflects summer purchases brought forward into April, when Easter and spring bank holidays coincided with exceptionally sunny weather. But recent cybersecurity issues faced by a number of retailers will also have had an impact, disrupting stock availability.”