Retail sales slow despite bank holiday boost

The ONS has reported that UK total retail sales increased by 3.9% in the four weeks between 30 April and 27 May, yet were still below the three-month average growth of 4.7% despite three bank holidays taking place in one month.

However, May retail sales improved upon a 1.1% decline from the same period last year. 

While sales figures are not adjusted for inflation, data from May and April show inflation running at historically record levels. According to the ONS, the rise in sales masked a much larger drop in volumes once inflation was accounted for. 

Like-for-like retail sales also rose by 3.7% in May, against a prior decline of 1.5% in the same period last year. 

Food sales increased 9.6% on a total basis, which was above the 12-month total average growth of 6.9%, while non-food sales increased 0.7% on a total basis and above the 12-month average growth of 0.5%. 

Over the three months to May, In-store non-food sales also increased 2.9% on a total basis since May 2022. This was below the total 12-month average growth of 3.7%.

Online non-food sales decreased by 3%, against a decline of 8.5% in May 2022. This is steeper than the three-month average decline of 2.8% and shallower than the 12-month decline of 4%. 

In addition, the proportion of non-food items bought online decreased to 36.3% in May from 37.1% in the same period last year.

Helen Dickinson, chief executive of the BRC, said: “The trio of bank holidays failed to get shoppers spending as sales growth slowed to its lowest level in six months. While food sales got a boost from the Coronation weekend, this was not sustained for the rest of the month. 

“With consumer confidence still recovering from record depths, and continued tightening of household incomes, we are unlikely to see substantial sales growth in the coming months.” 

She added: “Now is not the time for the government to impose more regulation and tax on business that will push up costs for retailers and prices for their customers.”