May saw a significant rebound in UK retail sales, rising by 2.9% following a decline in April.
- The Office for National Statistics revised April’s decline from a predicted 2.3% to 1.8%.
- Sales volumes increased across most sectors, notably in textiles and clothing which surged by 5.4%.
- Despite recent gains, sales volumes over the past three months are still down 0.2% compared to last year.
- A double bank holiday in May and improved consumer confidence appear to be driving this recovery.
In a welcome upswing for the UK’s retail sector, retail sales climbed by 2.9% in May compared to April’s slump, which was initially forecast to be worse at 2.3%. The Office for National Statistics (ONS) released these figures as a testament to the resilience of the market, which managed to overcome an April afflicted by poor weather conditions.
Strong performances were recorded across various sectors, with textiles and clothing leading the charge with a 5.4% increase. Department stores also fared well, with a 1.7% rise. This resurgence showcases a recovery in consumer spending, particularly in areas such as clothing and furniture, which had previously experienced reduced sales.
The reporting period, which spanned from late April to late May, highlighted a continuing challenge when comparing figures year-over-year. Despite a 1% growth over the three months leading to May, there was a 0.2% volume drop when compared with the same period the previous year. This indicates that while there is momentum, the sector is still grappling with underlying issues.
Key considerations for these figures include the recent double bank holidays, which likely bolstered consumer confidence. The King’s coronation bank holiday from the previous year also presents a unique comparison factor, suggesting that certain anomalies may have influenced consumer behaviours.
Deloitte’s head of retail, Oliver Vernon-Harcourt, commented, “A double bank holiday in May boosted the retail sector, which saw its first retail sales volume growth since January. The tide could be finally turning for retailers, with more consumers releasing their purse strings and spending on discretionary items such as clothing and furniture.” This sentiment aligns with the hopeful outlook that the summer months and favourable economic trends may continue to drive consumer spending positively.
The recent retail sales growth signals potential recovery, although past challenges linger.
