British retail sales rose more strongly than expected in May as warm weather, half-term trading and retailer promotions helped bring shoppers back after a weaker April.
Sales volumes climbed 1.2 per cent in May, according to the Office for National Statistics, reversing a one per cent fall the previous month and comfortably ahead of the 0.5 per cent increase forecast by economists in a Reuters poll.
Volumes were 3.2 per cent higher than a year earlier, also beating expectations of a 1.9 per cent rise.
Excluding petrol, sales volumes were up 1.2 per cent month on month and 4.6 per cent year on year, suggesting a broader improvement across retail categories.
Clothing and online retailers were among the strongest performers, helped by warmer weather and families shopping around the half-term break.
Lloyds Bank head of consumer Sandra Prince said retailers had benefited from more favourable trading conditions, although shoppers remained selective.
“Retailers received a boost in May, as warmer weather and the half-term holidays encouraged more people to head out and spend. Some areas did especially well, with clothing and online retailers showing strong demand,” she said.
“That said, consumers are still being cautious with their money and choosing what to buy more carefully.”
Prince added that retailers were continuing to lean on promotions and value-led offers as they tried to shield customers from rising costs.
“Retailers are trying to keep prices low for customers despite ongoing cost pressures, using promotions and a strong focus on value. With the World Cup and the busy summer shopping season ahead, they will be hoping this helps continue the momentum.”
The figures come against a mixed consumer backdrop. A separate survey published on Friday showed confidence held steady in June, although younger consumers became the least optimistic in two years about the economy and their own finances.
Households were also the least willing to make major purchases since January 2025, underlining the pressure still facing retailers despite May’s better-than-expected performance.
Major UK retailers have warned that the conflict in the Middle East continues to create uncertainty for shoppers and could add further pressure to costs.
Tesco and Morrisons both reported a slowdown in sales growth since the start of the conflict, although Tesco said sustained good weather would likely do more to lift sales than England and Scotland performing well in the men’s World Cup.
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