Period covered: May 18Published: June 05, 2018Read time: 1min

Retail Sales Monitor

Store Sales Make a Comeback in May

Helen Dickinson OBE, Chief Executive, BRC: 

"Retail sales in May saw their highest growth since January 2014 as better weather and the bank holiday effect led shoppers to buy from garden furniture and summer fashion ranges; recovering some of the ground lost in April. Food sales also stood out with the best single month's performance since July 2013. Encouragingly, growth was seen across channels as stores made a comeback with their best showing in 16 months.

"The FA Cup Final and Royal Wedding may have got the nation in the mood for celebration but the day itself was a distraction for shoppers as they stayed at home to watch the festivities; sales also tailed off once the party was over.

"Despite this more positive set of sales results, the retail environment remains extremely challenging, with trend growth still very low by historical standards. Retailers remain focused on investing in new and exciting shopping experiences for the future as margins remain tight and the competition fierce."

Paul Martin, Head of Retail, KPMG: 

“May provided a much needed uplift to retail performance delivering a respectable 4.1 per cent growth. Two bank holiday weekends, a Royal wedding and of course sunnier spells will have been the main drivers behind the apparent rebound, with both online and high street sales thankfully up overall.

“Grocery sales once again continued to be strong, boosted by added enthusiasm for picnics and barbeques. Elsewhere, appetite for non-food categories, including fashion, also experienced a welcome uplift. That said, the picture was less favourable in the larger discretionary categories such as home improvement and furniture.

“While the month’s figures may paint a rosier picture, there is no room for complacency. The market is increasingly being split into winners and losers, with a number of legacy players continuing to face extremely challenging conditions. As such, focusing on transforming businesses both operationally and financially is pivotal.”

Food & Drink sector performance, Joanne Denney-Finch, Chief Executive, IGD: 

“Warm dry weather in May combined with the Royal Wedding provided excellent conditions for food and grocery sales; especially beers, wines and spirits.

“The World Cup in June could prolong this run, and if we are really lucky, into July. There has also been a moderate rise in shopper confidence. 26 per cent expect to be better off in the year ahead up from 23 per cent in April and 22 per cent this time last year.”