The retail sector in the United Kingdom experienced a slight recovery in sales during May.
- Total retail sales increased by 0.7% year on year, though this was less than last year’s growth of 3.9%.
- Non-food retail sales saw a decline, affected by poor weather conditions dampening consumer footfall.
- Online sales showed an increase, with a rise in the online penetration rate to 36.7%.
- Key areas such as health, personal care, and computing continued to perform well.
The retail sector in the United Kingdom observed a mild recovery in the month of May, with overall sales increasing by 0.7% compared to the previous year. This figure, while positive, reflects a decrease from May 2023’s growth rate of 3.9%. The British Retail Consortium (BRC) and KPMG highlighted that this growth was slightly above the three-month average but below the 12-month average increase, indicating a cautious economic environment.
Non-food retail sales experienced a noticeable downturn. They fell by 2.4% year on year over the three months leading to May, a steeper decline than the 12-month average of 1.7%. In-store non-food sales dropped by 2.7%, yet online sales in this segment grew by 1.5%, marking a shift towards digital consumer habits.
The penetration of online sales saw a minor yet significant increase, with 36.7% of non-food items purchased online, up from 35.9% in May the previous year. This trend underlines the growing importance of e-commerce in the retail landscape, even as traditional in-store sales falter.
BRC Chief Executive Helen Dickinson noted the mixed performance of the retail sector, citing the impact of unfavourable weather conditions despite a promising bank holiday weekend. She described the sales rebound as modest, highlighting the sector’s ongoing challenges.
Linda Ellett from KPMG pointed out that specific sectors such as health, personal care, beauty, and computing continued to see positive sales momentum. With the arrival of warmer weather and events like Euro 2024, retailers remain hopeful for a boost in consumer spending, though the sector’s health remains delicate.
The UK retail sector shows mixed signals of growth, balancing optimism with underlying challenges.
