UK Retail Sales Growth Strongest in Over a Year

UK retail sales increased by 3.7% year-on-year on a like-for-like basis in May 2026, exceeding market expectations for a 0.6% gain and marking the strongest growth since April 2025. The latest figure rebounded from a 3.4% decline in April, driven largely by seasonal demand during a May heatwave and the early bank holiday period. Food sales advanced 3.9%, lifted by bank holiday barbecue demand, while non-food categories, such as clothing, footwear, outdoor goods, health and beauty, and home products, rose 3.5% as warmer weather encouraged spending in outdoor and summer goods. However, travel spending fell 5.8% year-on-year for a third consecutive month, and airline expenditure dropped 12.9%. Barclays said two-thirds of respondents were adjusting their finances because of broader economic uncertainty, including concerns linked to the Iran conflict and rising living costs.

UK retail sales decreased by 3.4% year-on-year on a like-for-like basis in April 2026, sharply missing expectations for a 0.8% increase and reversing the 3.1% growth recorded in March. The latest figure marked the first contraction in retail activity since November 2024, highlighting a notable deterioration in consumer demand. Broader data also showed Barclays credit and debit card spending falling 0.1% annually, the first decline in five months, while total retail sales dropped 3%. The pullback was most evident in discretionary categories, with travel spending plunging 5.7% and weakness also seen in furniture, hotels, and other big-ticket purchases. Retailers attributed the slowdown to uncertainty surrounding the Iran conflict, which fueled concerns over higher living costs and prompted households to prioritize savings over spending. While Easter timing effects partly distorted the monthly comparison, the data still points to weakening UK consumer confidence.

UK retail sales increased 3.1% year-on-year on a like-for-like basis in March 2026, far above market expectations for a 0.9% rise. The latest figure also rose sharply from February’s nine-month low of 0.7%, marking the strongest growth since April 2025, mainly attributed to an early Easter. Food sales rose 6.8%, surpassing the 12-month average of 2.6%. Meanwhile, non-food sales rose 0.9%, below the average 1.1% growth over the past year. However, the clothing and footwear sectors continued to face challenges. Furthermore, uncertainty surrounding international travel due to the Middle East situation negatively impacted sales of travel-related goods. BRC Chief Executive Helen Dickinson said: “An early Easter provided a much-needed boost to food sales as families came together over the long weekend.” She added that retailers hope the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain.