UK Retail Sales Beat Expectations

UK retail sales volumes increased 1.0% month-on-month in June 2026, defying market expectations of a 0.3% fall, though easing from a 1.2% rise in May. Sales were boosted by hot weather and the World Cup, which temporarily offset persistent cost-of-living and inflation worries. Non-store retail sales went up on sales promotions and demand for sports merchandise, clothing, outdoor products, fans, and air conditioning. Clothing store sales rose 1.9%, the largest monthly increase since September 2025, also supported by promotional discounts and warmer weather. Within other non-food stores, art galleries also performed well, while retailers broadly cited stronger demand for seasonal goods. In addition, online sales increased 2.8%. On an annual basis, retail sales climbed 4.2%, the strongest growth since January, surpassing market forecasts of a 2.3% rise and following an upwardly revised 3.5% gain in May. Retail sales rose 0.6% in the second quarter compared with the previous quarter.

UK retail sales volumes rose 1.2% month-on-month in May 2026, rebounding from a downwardly revised 1.0% decline in April and exceeding market expectations of a 0.5% increase. This marked the best performance in four months, driven by a 6.1% jump in non-store retail sales, the largest increase since February 2025, and lifting volumes to their highest level since January 2022. Retailers attributed the gain to promotional campaigns and warmer weather, which boosted demand for seasonal products such as outdoor furniture and fans. Non-food stores also posted solid growth, with department stores benefiting from the same factors. Meanwhile, online sales rose by 3.3%. On a yearly basis, retail trade advanced 3.2%, the strongest reading since January, picking up from 0.1% in April and easily beating forecasts of 1.9% growth. On a three-month basis, retail sales rose 0.4% compared with the three months to February.

UK retail sales volumes dropped 1.3% month-on-month in April 2026, worse than expectations of a 0.6% fall and reversing a revised 0.6% rise in March. This marked the biggest fall since May 2025, mainly due to a 10.2% slump in fuel sales, the sharpest decline since November 2020, as motorists made fewer journeys and delayed refuelling amid higher prices. This followed a jump in the previous month when many consumers had stocked up on fuel following the start of the Middle East conflict. Excluding automotive fuel, retail trade decreased 0.4%. Sales at non-food stores went down 1.0%, with clothing store sales falling 2.4% to their lowest level since June 2025, as retailers cited volatile weather conditions, weaker demand, and heightened price sensitivity. Non-store retailers also reported reduced sales, with unpredictable weather weighing on seasonal campaigns. On a yearly basis, retail sales were unchanged, compared with forecasts of a 1.3% increase and a revised 1.4% gain in March.