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UK retail spending progress slowed to its weakest tempo this 12 months in Might, in keeping with new knowledge, casting doubt on the power of shopper resilience.
The worth of retail gross sales elevated at an annual charge of 1 per cent in Might, the bottom charge in 2025 and nicely under the common of two.5 per cent between January and Might, in keeping with figures revealed by the British Retail Consortium on Tuesday.
The determine additionally lagged behind the April inflation charge of three.4 per cent, suggesting a fall in real-terms spending.
Helen Dickinson, chief govt of the British Retail Consortium, mentioned shoppers had “put the brakes on spending”, particularly on non-food objects akin to vogue and full value, big-ticket purchases, held again “by decrease shopper confidence”.
Nevertheless, meals gross sales had remained regular, helped by a number of main soccer tournaments, whereas gaming had additionally carried out nicely due to in style new releases, she added.
Official knowledge confirmed that within the three months to April, the inflation-adjusted gross sales rose 1.8 per cent in contrast with the earlier three months, the quickest charge since July 2021. Nevertheless, the BRC knowledge recommend that the figures for Might, revealed on June 20, may very well be weaker.
Within the first three months of the 12 months, the UK economic system grew greater than anticipated at 0.7 per cent, however economists, together with on the Financial institution of England, count on the tempo to sluggish within the second quarter.
Linda Ellett, UK head of shopper, retail and leisure at KPMG, which helps compile the BRC knowledge, mentioned sunny climate had meant some consumers made seasonal purchases early, contributing to a slowdown in gross sales progress in Might. She added that spending urge for food was additionally damped after households have been hit by an increase in important payments in April.
The BRC figures chime with these from Barclays, which on Tuesday reported shopper credit score and debit card spending rising by an annual charge of just one per cent, additionally under the most recent tempo of inflation.
Card spending on clothes rose simply 0.9 per cent in Might whereas transactions within the sector have been up 3.8 per cent, which Barclays mentioned indicated consumers have been switching to cheaper objects or manufacturers. Spending on electronics and residential enchancment contracted.
Barclays’ head of retail, Karen Johnson, mentioned consumers have been “turning into extra value-conscious”, balancing important spending with small luxuries akin to cinema journeys, backyard initiatives or quick breaks. And whereas sunshine within the first half of the month helped gross sales, “longer-term uncertainty continues to form how and the place individuals select to spend”, she added.
