TOP NEWS: UK retail sales rise in May thanks to food and online sales

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UK retail sales grew slightly overall in May, but this was entirely due to food sales as non-food sales remained in decline, figures from an industry group showed on Tuesday.

Total UK retail sales increased by 0.7% from a year before last month, according to the BRC-KPMG retail sales monitor, swinging from an annual decline of 4.0% in April. The May increase was above the three-month annual growth average of 0.3% but below the 12-month average of 2.0%. In May 2023, sales had grown by 3.9% annually.

Food sales grew on year in May, while non-food sales decreased, the British Retail Consortium and accountants KPMG said, without giving percentages for the single month.

Food sales increased by 3.6% in the three months to May from a year before, below their 12-month average annual growth of 6.4%. Non-food sales declined by 2.4% in the same period, worsening from their 1.7% average annual decline over the past 12 months.

The decline in non-food sales last month was due to weakness on the high street, while online sales rose.

In-store non-food sales were down 2.7% annually in the three months to May, worse than the 1.1% average decline over the past 12 months. By contrast, online non-food sales were up 1.5% in the month of May alone, though still down 1.8% in the three months to May and 2.6% in the past 12 months.

‘Despite a strong bank holiday weekend for retailers, minimal improvement to weather across most of May meant only a modest rebound in retail sales last month,’ commented BRC Chief Executive Helen Dickinson.

‘Although non-food sales fell over the course of the month, the long weekend did see increased purchases of DIY and gardening equipment, as well as strong clothing sales.’

Added Linda Ellett, UK head of Consumer, Retail & Leisure at KPMG: ‘Whilst May’s figures show barely positive increases in retail sales, with less than one percent growth year-on-year, the impact of falling [consumer price index inflation] - which means volumes are not declining as quickly - may help to soften the blow for hard-working retailers.’

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