Retail sales figures for May have shown a promising increase, overturning the previous month’s decline. The Office for National Statistics reported a 2.9% rise, compared to April’s 1.8% drop. This growth was notably bolstered by improved weather conditions and consumer confidence.
- After a 1.8% decline in April due to adverse weather, retail sales rebounded in May with a 2.9% increase.
- Clothing retailers experienced a significant recovery, with sales volumes up by 5.4% as they recouped losses from April.
- The three months leading to May showed a modest 1% rise in retail sales compared to the previous quarter, though a slight year-on-year decline was noted.
- Despite economic challenges, including the cost of living crisis, consumer behaviour suggests a potential uplift in retail confidence.
In May, retail sales figures released by the Office for National Statistics (ONS) revealed a notable recovery, with a rise of 2.9% following the previous month’s 1.8% decline attributed to wet weather. This positive shift indicates an upturn in consumer activity as weather conditions improved.
Clothing retailers, in particular, saw a resurgence, experiencing a 5.4% increase in sales volumes after a slump in April. Department stores also benefitted, reporting a 1.7% rise, suggesting that shoppers are returning to physical retail outlets.
Analyzing the broader three-month period leading to May, a modest 1% increase was recorded compared to the preceding quarter. However, when compared to the same period last year, sales volumes showed a slight decrease of 0.2%, taking into account the additional bank holiday in May 2023 for the King’s coronation.
Oliver Vernon-Harcourt, head of retail at Deloitte, noted the positive impact of the double bank holidays in May, pointing to a shift in consumer spending towards discretionary items such as clothing and furniture. He remarked, “The tide could be finally turning for retailers, with more consumers releasing their purse strings.”
Despite persistent economic pressures, including high inflation and the cost of living crisis, these figures suggest an emerging confidence among consumers. The retail sector hopes for continued spending momentum as the warmer days of summer approach, potentially translating into sustained consumer engagement.
Overall, the retail sales data for May presents a cautiously optimistic picture, highlighting a potential turning point in consumer spending behavior.
