UK retail sales suffer largest monthly fall in 18 months as all sectors decline

Retail sales volumes are estimated to have declined by 2.7% in May following a 1.3% increase in April. This is the largest fall on the month since December 2023.

Annual sales volumes fell by 1.3% from May 2024 to the same period in 2025, while the three months to May saw sales volumes rise 0.8% compared to the quarter to February.

Food store sales volumes suffered a 5% drop month on month against a growth of 4.7% in April. This was food’s biggest monthly drop since May 2021, with this fall being attributed to inflation, customer cutbacks, and reduced sales of alcohol and tobacco items.

Non-food store sales volumes declined 1.4% in May. Department stores fell 1.5%, clothing dropped 1.8%, and household goods stores fell 2.5%.

The ONS said retailers had commented that reduced footfall and “consumers having completed home projects earlier than usual because of good weather”, contributed to lower sales in May.

Online spending values fell for the second consecutive month, dropping 1% in May and 2.5% annually.

Alvarez & Marsal European retail and consumer lead Erin Brookes said: “Retail sales disappointed in May, interrupting the sector’s positive momentum since the start of the year. A combination of better weather and bank holiday weekends were not enough to overcome wider pressures on consumer confidence, highlighting the fragility of the sector’s recovery since Christmas.

“The second half of the year will bring fresh tests as employers face a potential wave of additional costs, including the impact of tariffs which is currently difficult to measure and the introduction of the new packaging tax. A return to growth will depend on retailers’ ability to manage disruption, protect supply chain resilience and unlock discretionary spending through clear value propositions, particularly around summer travel, leisure and seasonal purchases.”

Shopify managing director of Europe, Middle East, and Africa Deann Evans added: “However, there is reason to be optimistic that the summer months and warmer weather will inspire increased consumer spending and a return to sales growth. 

“Perhaps even more impactful will be the cultural moments that summer brings. Just like we saw with Taylor Swift’s Eras tour last year, the “Beyonce Effect” is in full swing as she brings her Cowboy Carter tour to the UK. With Glastonbury Festival and the Oasis tour close on the horizon, there is a significant opportunity here for retailers to capitalise—provided they have the right tools and systems in place.”