Retail sales in the UK experienced a significant decline of 2.7% in May 2025 compared to the previous month, surpassing the anticipated decline of 0.5%. This follows a revised increase of 1.3% in April and represents the most substantial monthly decrease since December 2023. The primary driver of this downturn was a 5% reduction in food store sales—the most significant drop since May 2021—primarily due to decreased supermarket sales. Retailers have attributed this decline to inflation pressures, diminished consumer spending, and lower sales of alcohol and tobacco products.
The non-food sector also saw a decline, with sales volumes dropping by 1.4%. This has been linked to lower sales in clothing and household goods categories, notably including hardware and paint stores. Retailers have pointed to reduced foot traffic and the early completion of home improvement projects, spurred by the favorable weather earlier in the year, as contributing factors to the subdued sales figures in May. When excluding fuel, retail sales saw a 2.8% decrease from the prior month. On a year-on-year basis, sales fell by 1.3%, falling short of the expected 1.7% increase and marking the most significant annual decline since April 2024.
