Retail sales slow in May as consumers tighten belts
Posted on in Business News , Cycles News , Creative News, Outdoor News
According to the latest BRC-KPMG Retail Sales Monitor, total UK retail sales fell 0.2% against a growth of 1.4% last year, with like-for-like sales down by 0.4%.
Over the three-months to May, Non-Food retail sales in the UK decreased 0.3% on a like-for-like basis and increased 0.1% on a total basis, below the 12-month total average growth to 0.5%. This was the worst rate recorded since May 2011.
Helen Dickinson OBE, chief executive, British Retail Consortium, said: "Overall, May's sales slowdown is indicative of a longer term trend of a decline in consumer spending power. As household budgets become increasingly squeezed by inflation, predominantly in the non-retail part of the consumer basket, it's vital that the next Government helps retailers keep prices low for ordinary shoppers.
"This means, as well as securing a tariff-free trade deal with the EU, negotiating frictionless customs arrangements; providing certainty for EU colleagues working in the UK; and ensuring the continuity of existing EU legislation as it transfers into UK law."
Paul Martin, UK head of retail, KPMG, added: "With inflation continuing to rise and wage growth stagnating, consumers are starting to feel the pinch - although the highly competitive nature of the UK grocery market continues to play out in the consumer's favour.
"An increased focus on managing costs will dominate the retail agenda. More imminently though, eyes will be firmly placed on the outcome of the General Election, with close attention being paid to the implications it might have on the Industry."