UK shoppers slam the brakes on purchases – except for gaming and picnics
UK shoppers have slowed spending considerably over the last month as financial uncertainty continues to impact consumers.
Data published by the British Retail Consortium and KPMG on Tuesday (10 June) shows UK Total retail sales increased by 1% year on year in May, against growth of 0.7% in May 2024.
Food sales increased by 3.6% year on year in May, against growth of 2.8% in May 2024. Non-food sales decreased by 1.1% year on year in May, flat against a decline of 1.1% in May 2024.
“Consumers put the brakes on spending, with the slowest growth in 2025 so far,” said Helen Dickinson (Chief Executive of the British Retail Consortium). “This was due largely to declines in non-food sales, as fashion and full-price big-ticket items were held back by lower consumer confidence. “
She noted that gaming bucked the trend, thanks to some popular new releases. Food sales also remained solid as the month saw the conclusion of football tournaments and two bank holidays, prompting spending on BBQs and picnics.
Dickinson noted that retailers are grappling with the £5bn in extra costs from higher National Insurance contributions and wages, which kicked in during April.
“They also face an additional £2 billion later this year from new packaging taxes and remain concerned about the consequences of the Employment Rights Bill. Ensuring the new Bill supports workers’ rights without undermining retailers’ ability to continue to provide jobs and investment in people will determine whether the Government achieves economic growth across the country or not,” she said.
Commenting on the data, Linda Ellett (UK Head of Consumer Retail & Leisure at KPMG) noted that while the sunshine continued, the pace of retail sales growth didn’t in May.
“Early seasonal purchases were likely a factor, as was a dampening of some spending appetite as households reflected upon the recent combination of essential bill rises. But May still saw slight growth, driven mainly by food and drink, with non-food purchases falling overall,” she said.
“Travel demand for the summer months ahead looks healthy, so retailers will be hoping June sees an upturn in related spending as people begin to think about what they want to pack in their suitcase.”
