Retail Sales Growth Declines as Consumers Curb Spending

In May, retail sales experienced their slowest growth this year, as consumers began to reduce their spending on clothing and high-value items, according to a report released on Tuesday.

The British Retail Consortium, in collaboration with KPMG, reported that retail sales grew by just 1 percent year-on-year in May, significantly slowing from a 7 percent increase in April.

Sales in non-food stores fell by 1.1 percent compared to the same month last year, a stark contrast to the 6.1 percent rise seen in April. Conversely, food sales saw a notable uptick of 3.6 percent annually.

Helen Dickinson, the chief executive of the British Retail Consortium, remarked, “Consumers are curbing their spending, resulting in the lowest growth rate of 2025 thus far. This trend primarily arises from declines in non-food sales, with fashion and full-priced luxury items suffering due to waning consumer confidence.”

“However, the gaming sector showed resilience, aided by several popular new releases. Food purchases remained robust, bolstered by the conclusion of football tournaments and two bank holidays, which encouraged spending on BBQs and picnics,” she added.

The findings from the BRC-KPMG study are anticipated to foreshadow the official retail sales figures from the Office for National Statistics (ONS), which will be published on June 20. The ONS had previously reported a 1.8 percent sales increase over the three months leading up to April.

Additionally, Barclays’ independent research indicated that retail sales rose by 1 percent in May, down from an earlier growth rate of 4.5 percent in April, and fell well below the April inflation rate of 3.5 percent.

Barclays pointed to a significant slowdown in consumer spending, largely attributed to adverse weather conditions in late May, increasing worries about personal finances, and a decline in consumer confidence. According to GfK, consumer confidence did show some slight improvement, rising to -20 in May from -23 in April.