// Retail sales increase month on month by 0.3% in May
// Food continues to be significantly impacted by inflation, with volumes falling 0.5% in May
UK retail sales rose unexpectedly in May thanks to three bank holidays and a run of warm weather, with sales up 0.3% during the month, defying economist predictions of a 0.2% decline.
Non-store sales grew by 2.7% mostly due to a significant increase in online shopping for items like outdoor goods and summer clothing.
But food sales were down 0.5% in May, signifying customers might be cutting back amid sky-high supermarket inflation.
Despite grocery price inflation falling to its lowest level this year, sitting at 16.5% for the four weeks to 11 June 2023, it remains sixth highest monthly figure since 2008.
ONS senior statistician Heather Bovill said: “Retail sales grew a little in May, with online shops doing particularly well selling outdoor goods and summer clothes, as the sun began to shine. May also saw a return to growth for fuel sales after a dip in April.
“Garden centres and DIY stores also saw growth, as the good weather encouraged people to start home and garden improvements.”
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According to Deloitte retail partner Kelly Miely, a trio of bank holidays, combined with the arrival of warm weather, encouraged consumers to spend on summer clothing and outdoor goods, leading to “an unexpected” lift in retail sales volumes in May.
“Despite the sunshine and official data showing some strong annual pay increases, the situation remains difficult for both retailers and consumers. Consumers in particular are alive to persistent inflation driving stubbornly high food prices,” Miely added.
“A price sensitive consumer is likely to stay with retailers that remain competitive by offering good value product ranges and cutting price of core items.”
The results present a different picture of UK retail sales in May from BRC-KPMG Retail Sales Monitor, which found that revenue growth fell below the three-month average and well below April despite the total sales increase by 3.9%.
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