UK retail bounced back in May, fashion strong

UK retail sales volumes rose by 2.9% month on month in May, following a fall of 1.8% in April, the Office for National Statistics said on Friday. It added that sales volumes rose across most sectors, with clothing retailers “rebounding” following poor weather in April.

Non-food stores sales volumes (which takes in department, clothing, household, and other non-food stores) rose by 3.5%. This was the largest monthly rise since April 2021, and follows a fall of 3% in April 2024. 

Year on year, overall sales volumes rose 2.1% and the value of sales rose 1.2% against May 2023, which suggests we shouldn’t get too carried away as that last figure still doesn’t counter the impact of inflation over the past year. However, there’s no denying that the latest numbers are encouraging after some weak reports in recent months.

Within non-food stores, “there was strong monthly growth for clothing and footwear retailers, furniture stores, and sports equipment, games and toys stores. These retailers reported improved footfall, better weather, and the impact of promotions”.

Meanwhile, ‘non-store retailers’, which are mainly online, rose by 5.9% month on month. This was the largest monthly increase since April 2022. The rise was because of strong clothing and other non-food sales.

So what do sector watchers think of it all? Most were encouraged, but very aware that current sales aren’t exactly buoyant.

Kris Hamer, Director of Insight at the British Retail Consortium, said: “The record warmth of May led to a small recovery in retail sales for the month. Larger retailers outperformed small retailers, with clothing and footwear particularly benefitting from the change in temperatures. Nonetheless, sales volumes still remain below their 2021 levels.”

Oliver Vernon-Harcourt, head of retail at Deloitte, said: “A double Bank Holiday in May boosted the sector. The tide could be finally turning with more consumers releasing their purse strings and spending on discretionary items such as clothing. There are signs that certain recessionary behaviours are easing.

“The summer of sport has kicked off, and with warmer days upon us, the retail sector will be hoping to see spending momentum continue. Consumers are feeling more confident about their disposable income, but the next step for retail recovery will be seeing this translate into sustained levels of spending.”

Jon Boland, General Manager of payments specialist Clover in the UK, added: “This suggests shoppers are gaining more confidence at the checkout. Analysing transaction data from across our client base of tens of thousands of small and medium enterprises in the UK, we see the bank holidays led to a significant uplift in spending at garden centres, sport shops, and florists.”

Finally, Tom Youldon, Partner at McKinsey & Company, highlighted the online improvement for fashion: “Online trading in apparel is finally recovering, with textile, clothing and footwear online sales rising 9.8%. Activity was likely boosted by the May bank holidays and some willingness from shoppers to splurge on discretionary goods. Although sales volumes overall still remain slightly below pre-Covid-19 levels.  

“However, volatility could persist. Many shoppers are quickly swinging from saving to splurging. Retailers need to build a rich understanding of fast-changing preferences so they can deliver value through loyalty and pricing strategies — offering premium products where consumers are willing to treat themselves or tailoring product assortments in categories where shoppers are trading-down or switching brands.”