UK Retail Sales Fall More Sharply Than Expected

2025-06-20 06:10 By Kyrie Dichosa 1 min. read

Retail sales in the UK dropped by 2.7% month-over-month in May 2025, a sharper decline than the expected 0.5% fall, following an upwardly revised 1.3% increase in April.

This was the steepest monthly drop since December 2023, driven largely by a 5% fall in food store sales—the biggest decline since May 2021—due to reduced supermarket sales.

Retailers cited inflation, weaker consumer spending, and lower sales of alcohol and tobacco products as key factors.

Non-food store sales volumes also fell by 1.4%, attributed to weaker sales in clothing and household goods stores, including hardware and paint retailers.

According to retailers, reduced foot traffic and the early completion of home improvement projects—helped by favorable weather earlier in the year—contributed to weaker sales in May.

Excluding fuel, retail sales declined 2.8% from the previous month.

On an annual basis, sales dropped 1.3%, missing forecasts of a 1.7% increase and marking the largest annual fall since April 2024.



News Stream
UK Retail Sales Fall 0.4% in February
UK retail sales volumes fell 0.4% month-on-month in February 2026, following an upwardly revised 2% jump in January, but smaller than the expected 0.7% decline. This marked the first monthly drop in three months, as sales at supermarkets and household goods stores fell, with retailers citing wet weather and above-average rainfall as dampening demand. Non-store retailers, mainly online, also saw a slight decline, as shoppers reportedly brought forward purchases to January to take advantage of seasonal discounts. The retail dip comes ahead of broader economic pressures, including rising energy costs and geopolitical uncertainty. On an annual basis, retail volumes rose 2.5%, down from January’s 4.8% surge, while sales over the three months to February increased 0.7% compared with the previous period.
2026-03-27
UK Retail Sales Growth Hits 20-Month High
UK retail sales volumes rose by 1.8% month-on-month in January 2026, comfortably surpassing market expectations of a 0.2% increase and accelerating from a 0.4% gain in December. It marked the strongest monthly growth since May 2024, as interest rate cuts and easing inflation likely lifted consumer confidence across British shopping districts. It was also the first back-to-back increase in six months, offering a welcome boost to the Labour government’s efforts to revive the economy. Growth was driven by strong demand in non-food stores, particularly for artwork and antiques. Online and mail-order retailers also performed well, with sports supplements and jewellery sales reaching notably high levels. On an annual basis, retail sales volumes climbed to a near four-year high of 4.5%, from a revised 1.9% in December and above the expected 2.8%. Over the three months to January, sales volumes edged up 0.1% compared with the previous three-month period and were 2.6% higher than a year ago.
2026-02-20
UK Retail Sales Unexpectedly Rise
UK retail sales volumes rose 0.4% month-on-month in December 2025, defying market expectations and reversing November’s 0.1% decline. Growth was driven by non-store retailers, with online jewellers reporting stronger demand for precious metals amid increased holiday spending. Supermarkets and automotive fuel sales also recorded modest gains, while non-food stores, including department, clothing, household, and other outlets, declined. Internet retailing performed strongly as well, rising 1.8% over the month. On an annual basis, retail sales volumes increased 2.5%, the fastest pace since April, up from a 1.8% rise in November and exceeding expectations of a 1% gain. Over the three months to December, sales volumes fell 0.3% compared with the previous three months but were up 2.1% year-on-year. For the full year, retail trade rose 1.3% in 2025, following a 0.2% increase in 2024, with all major sectors advancing except automotive fuel.
2026-01-23