Bank holidays boost May retail sales

Retail sales volumes are estimated to have risen by 0.3% in May 2023, beating analysts’ forecasts amid a welcomed boost from warm weather and May bank holidays.

According to the latest figures from the Office for National Statistics (ONS), non-store retailing sales volumes rose by 2.7% in May 2023 because of strong sales by online retailers selling outdoor-related goods and summer clothing.

Automotive fuel stores sales volumes also rose by 1.7% in May 2023, following a fall of 1.7% in April 2023, however, sales volumes were still 9.5% below their pre-coronavirus (Covid-19) February 2020 levels.

Meanwhile, food stores sales volumes fell by 0.5% in May 2023, with some anecdotal evidence of increased spending on takeaways and fast food because of the extra bank holiday, however retailers also indicated that increased cost of living and food prices continued to affect sales volumes.

Non-food stores sales volumes fell by 0.2% in May 2023, following a rise of 0.9% in April.

Responding to May’s figures, Helen Dickinson, chief executive of the British Retail Consortium, said: “May’s three bank holidays gave retailers a needed boost as sales growth accelerated to 7.7%. This could be seen for books, and SPF cosmetics in particular, which improved due to the brighter weather at the end of the month and as people prepare for summer getaways. Nonetheless, households continue to feel the pinch from the high cost of living, and are limiting their discretionary spending.

“Yesterday’s interest rates announcement will be disappointing for many, and will further tighten the purse strings of many. However, this effect may be partially offset by the easing of food inflation, which fell for the second month in a row. Whatever happens, it will continue to be a challenging few months for retailers and their customers.”