Retail sales volumes across Great Britain slumped 2.7% in May — the biggest monthly drop since December 2023 — as demand cooled following a weather-boosted April.
According to the latest Retail Sales Index from the Office for National Statistics (ONS), sales declined across all major sectors, with food stores seeing the steepest fall at 5%, driven by fewer supermarket trips and lower alcohol and tobacco sales.
Non-food store volumes also fell 1.4% over the month, dragged down by clothing and household goods as shoppers who brought forward seasonal and DIY purchases earlier in the spring tightened their belts.
Despite the sharp monthly drop, volumes rose by 0.8% in the three months to May compared with the previous quarter, and were 1.7% higher than the same period last year.
Online sales fell 1% month on month — the second consecutive drop — although their share of total retail spend increased from 26.8% to 27.2%.
The ONS said total volumes remain 2.7% below pre-pandemic levels from February 2020.
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Deloitte head of retail Oliver Vernon-Harcourt said: “For the first time this year, retail sales fell more than expected, as two bank holidays and further good weather were not enough to entice spending. A late Easter combined with the sunniest April on record brought some seasonal sales forward, meanwhile continued inflationary pressures from food, furniture and household goods hampered sales volumes.
“Overall, consumers remain cautious in the face of persistent inflation, increased utility costs and ongoing geopolitical uncertainty. While this transpired into fewer purchases in May, there is a broader picture of improving household finances. Consumers have been saving at one of the highest levels on record, and with robust real wage growth, this could generate some helpful tailwinds for the retail sector throughout the rest of 2025.
“With warm weather set to continue, retailers will hope to see a boost from the sale of summer food, clothing and outdoor offerings, resulting in a return to growth in the months ahead.”
British Retail Consortium director of insight Kris Hamer added: “This weak consumer demand comes at a particularly bad time as retailers are having to grapple with billions of pounds of extra costs this year following the Chancellor’s Budget last October.
The future of business rates reforms is still unclear, but It is vital that it does not result in any shop paying more. Otherwise many retailers could be forced to shut down stores, which will impact jobs and local communities, and ultimately the UK’s economic growth.”
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