Overview
- Total retail sales rose 3.7% year on year in May, reversing a 3.0% fall in April and driven by spending on clothing, footwear and outdoor goods.
- Online non-food sales climbed more than 10% in May as shoppers bought sandals, sunglasses, fans and barbecue items from home.
- Consumer card spending grew 0.8% year on year in May, which remained weaker than inflation running at around 3% and limits real purchasing power.
- Spending on travel fell for a third month, down 5.8% overall and with airline outlays down 12.9% year on year, as households delay some holiday plans.
- Retail leaders warned that higher taxes, rising energy costs and changes to labour rules such as limits on zero-hours contracts could squeeze margins, reduce investment and push prices higher for shoppers.