- Retail sales rose 2.9% in May after a revised fall of 1.8% in April
- Warm weather boosted clothing sales in store and online
- Amount spent online up 5.4% over the month
Danni Hewson, head of financial analysis at AJ Bell, comments on the latest UK retail sales figures:
“There’s little wonder we Brits are obsessed with the weather. It exerts a huge amount of control over our lives, dictating what we can and can’t do and crucially for retailers, impacting our buying decisions.
“Supermarkets have long had forecasters who pore over meteorological charts so they know when to fill up the fridges and freezers with burgers and ice cream and when to stock up on hearty soups.
“A bit of sunshine in the month of May which helped lift temperatures and spirits translated into a bump in sales, especially for clothing and furniture retailers. People were finally able to return the sweaters to the back of their wardrobes and with a couple of long weekends to socialise, they were minded to splash out on some new summer clothing.
“Gardens were given a spruce up, as warped wooden chairs were replaced with new patio sets and children were gifted with sporting equipment and toys to keep them occupied over the school holidays.
“People have started to feel the benefit of falling inflation and are feeling more confident about spending the few extra pennies they’re getting in their pay packets thanks to the cut in National Insurance and the increase in the National Living Wage.
“Interest rates might have been held in May and again in June, but there has been movement in the housing market after a surge in homes being put up for sale over Easter. Whether people are moving or staying put, they are finally making moves to replace big ticket items they’ve been making do with over the past couple of years.
“The opportunity to get out and about did see more people hit the high streets, but the jump in online spend suggests they were more interested in letting their fingers do the work, ordering online so they had more time to enjoy activities with friends and family over those bank holidays.
“Consumer confidence will be crucial if the economy is to deliver the kind of growth all political parties say is needed to fund their manifesto promises. A better performance by England at the Euros, Scotland hanging on for another round and a summer of music gigs and festivals catering for all tastes could provide exactly the boost any government would want at the start of their term in office.
“But the old saying about fixing the roof whilst the sun shines holds true, especially in the UK, and a wet summer could change everything.”
