UK retail sales bounce back in May

UK: Retail sales bounce back in May

By Petah Marian | 21 June 2012

UK retail sales bounced back in May, rising 3.3% after a wet April saw sales decline, according to official statistics released today (21 June).

Retail sales volumes were 2.4% higher than May last year, the data from the Office for National Statistics showed, which it attributed to higher levels of promotions. Store price inflation has slowed to 0.9%, its lowest annual rate since October 2009.

Textile clothing and footwear stores recorded a 0.7% year-on-year gain after a 5.4% fall in April. However, sales volumes fell 1%, with the sector recording 1.8% price inflation in the year to May.

Commenting on the numbers, British Retail Consortium (BRC) director general Stephen Robertson said: "The end of weeks of relentless rain and the build-up to the Jubilee gave a useful boost in May, but retailers tell us the effect was largely confined to the final week of the month when the sun came out and so did shoppers.

"The seemingly shy sunshine, hardly seen since March, had created pent-up demand for summer goods which was finally unleashed. Modest sales of coats and carpets gave way to much better sales of T-shirts and barbecues as interest finally turned outdoors.

"Retail competition has helped push inflation down to a two-and-a-half year low, which is a good sign that pressures on household budgets are easing. But incomes are still dropping in real terms and customers' underlying lack of spending power remains a big problem."

Sectors: Apparel, Retail