Consumers put the brakes on spending, with the slowest growth in 2025 so far, says new data from the British Retail Consortium (BRC).
According to the latest BRC-KPMG Retail Sales Monitor, UK Total retail sales increased by 1% year on year in May, against growth of 0.7% in May 2024.
Food sales increased by 3.6% year on year in May, against growth of 2.8% in May 2024. Non-Food sales decreased by 1.1% year on year in May, flat against a decline of 1.1% in May 2024.
In-Store Non-Food sales decreased by 0.9% year on year in May, against a decline of 2.6% in May 2024. Online Non-Food sales decreased by 1.5% year on year in May, against growth of 1.5% in May 2024.
The online penetration rate (the proportion of Non-Food items bought online) remained flat at 35.9% in May, matching 35.9% in May 2024.
Helen Dickinson, Chief Executive of the British Retail Consortium, said: “This was due largely to declines in Non-food sales, as fashion and full price big-ticket items were held back by lower consumer confidence. Gaming bucked the trend, thanks to some popular new releases. Food sales remained solid as the month saw the conclusion of football tournaments and two bank holidays, prompting spending on BBQs and picnics.
“Retailers are grappling with the £5bn in extra costs from higher National Insurance contributions and wages, which kicked in during April. They also face an additional £2bn later this year from new packaging taxes and remain concerned about the consequences of the Employment Rights Bill. Ensuring the new Bill supports workers’ rights without undermining retailers’ ability to continue to provide jobs and investment in people will determine whether Government achieves economic growth across the country or not.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said: “While the sunshine continued, the pace of retail sales growth didn’t in May. Early seasonal purchases were likely a factor, as was a dampening of some spending appetite as households reflected upon the recent combination of essential bill rises. But May still saw slight growth, driven mainly by food and drink, with non-food purchases falling overall.
“Travel demand for the summer months ahead looks healthy, so retailers will be hoping June sees an upturn in related spending as people begin to think about what they want to pack in their suitcase.”
