UK retail sales slump in May as clothing stores see drop in footfall

UK retail sales fell at the fastest rate in more than a year last month, as food and clothing sales slumped, according to official figures.

The Office for National Statistics said the total volume of retail sales fell by 2.7% in May.

This compared with a 1.3% rise in April, which was revised up from a previous estimate of 1.2% for the month.

May’s overall retail sales came in considerably below the 0.7% decline that most economists had been expecting for the month.

It was also the biggest monthly fall since December 2023.

ONS Senior Statistician Hannah Finselbach said: "Retail sales fell sharply in May with their largest monthly fall since the end of 2023.

"This was mainly due to a dismal month for food retailers, especially supermarkets, following strong sales in April."

The volume of sales in food stores dropped by 5% in May – the largest monthly fall since May 2021.

This was mainly because of people buying less in supermarkets, with retailers citing inflation and customers making cutbacks, the ONS said.

The monthly decline for household goods was 2.5%, and for clothing and footwear shops it was 1.8%.

Finselbach added that clothing and homeware stores were reporting reduced footfall in May.

A drop in demand for DIY items last month came after sunny weather in April boosted home improvement projects.

Some electricals sold well in May, which experts linked to strong pre-sales before the launch of the Nintendo Switch 2.

Despite May’s decline, retail sales volumes rose by 0.8% across the three months to May, compared with the three months to February.

Nicholas Found, Head of Commercial Content at research consultancy Retail Economics, said: "May’s retail performance underlines a shift in consumer behaviour, with households putting value at the centre of spending decisions and pulling back on non-essential purchases.

"The cost of living remains the dominant concern for households.

"Households are deferring spending on full-price fashion, big ticket home items and other discretionary goods, instead prioritising travel and experiences into the summer."