Retail sales rise in May but volume declines

Sales by value increased 4.8% in May year on year and grew 0.6% month on month.

Sales by volume decreased 2.1% year on year but grew 0.3% from April to May.

Food store sales volume fell by 0.5% in May, following a rise of 0.6% in April, with the ONS citing “anecdotal evidence of increased spending on takeaways and fast food because of the extra bank holiday”.

Total non-food store sales volume decreased by 0.2% in May, while clothing stores sales volumes slipped 0.4%.

Household goods stores reported a rise in sales volumes of 1.5% month on month due to “strong sales in DIY stores that reported that good weather boosted sales”.

Total online retail sales increased by 6.7% year on year and 2.5% month on month.

McKinsey & Company partner Samantha Phillips said: “Retail sales value has grown month on month by 0.3%, for the second time since April. Year on year, volumes are still down by 2.1%, although value is significantly greater by 4.8% driven by continued underlying inflation.

“The shift towards good weather has boosted volume – primarily through online purchases, kicking off shoppers’ summer clothing sprees and a need for outdoor equipment. The trend for fuel has also reversed, verses April, likely due to falling prices and an increase in travel post-industrial action.

“Food continues to be significantly impacted by inflation with volumes falling 0.5% in May, off the back of green shoots of growth in April. This may be driven by a combination of different buying patterns outside of food retailing given multiple bank holidays and consistently high food prices like sugar (49.8%); milk, cheese and eggs (27.4%); oils and fats (22.6%); flour and other cereals (23.6%).”

“Non-food, offline retailing also saw volumes fall, underpinning this was watches, jewellery and other new goods, such as art. This may indicate consumer sentiment is still low and shoppers are opting to hold back on discretionary purchases to focus on their more immediate needs.”