Retail sales jump as third-warmest May on record sends Brits to the high street
UK retail sales climbed in May, as consumers flocked back to the high street amid the heatwave and showed sustained demand for new electronic products.
Retail sales volumes are estimated to have increased by 1.2 per cent in May, following a 1 per cent fall in April as fears over the Iran war caused Brits to curb their spending, according to the latest data from the Office for National Statistics.
The recovery in May was bolstered by the third-warmest May on record, with non-food stores leading the surge as investors looked to grab products to combat the heat.
Non-store retailers recorded a 6.1 per cent rise, the largest monthly increase since February 2025, as investors looked to grab products to combat the heat.
Retailers, in particular, credited warm-weather promotions and sales of items such as outdoor furniture, paddling pools and fans to the rise.
Department store volumes also increased 2.7 per cent in the three months to May, the largest three-monthly rise since September 2024, with analysts expecting summer events, including Wimbledon and the World Cup, to keep customers returning to the high street.
Erin Brookes, European retail and consumer lead at Alvarez & Marsal: “May’s retail sales figures offer hope that consumers are willing to spend again, with the warm weather and bank holiday weekends helping to drive demand across department stores, online retail and consumer electronics.
“Retailers will be willing this positive momentum to carry through the summer.”
Online surge but food stores suffer
Sales volumes among computer and telecoms retailers also rose, as customers showed sustained demand for products released in March, with some opting to hold off on making new purchases amid the uncertainty of the Iran war.
Online sales volumes also jumped 3.3 per cent in the three months to May, while sales values increased 12.2 per cent compared to the prior year.
However, food stores suffered a 0.4 per cent decline in sales as grocery volumes “remain under pressure” from squeezed households having to balance soaring bills, housing costs and volatile fuel prices, with Brookes noting many “are still prioritising saving”.
He said: “Beneath the headline growth, this remains a market shaped by selective demand rather than renewed confidence.
“Grocery volumes remain under pressure, and in non-food the strongest gains came where weather, timing and clear purpose aligned. Consumers are still value-conscious, deliberate and willing to shift, channel or delay spend in search of the right proposition and promotion.”
Alarm bells ringing
Despite the uptick in non-food purchases, analysts noted that the market remains “shaped by selective demand rather than renewed confidence”, with the heatwave primarily responsible for the surge.
Found said: “Consumers are still value-conscious, deliberate and willing to shift channel or delay spend in search of the right proposition and promotion.
“That leaves retailers trapped between political pressure and commercial reality. The government is pushing the sector to do more to support stretched households, but retailers are facing rising wages, energy, and operating costs of their own.
“Retailers know these moments tend to create pockets of demand rather than a broad uplift. The challenge remains in supporting affordability for customers, while protecting profitability.”
However, some noted that the potential end to the conflict in the Middle East, as well as major summer sporting events, could keep sales elevated in June.
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Brighter times may lie ahead. With some resilience in households’ personal finances, the end of geopolitical tensions and World Cup fever kicking in, we could see spending continuing to improve. Consumers may start enjoying more seasonal splurges, including in the more discretionary categories.”