UK retail sales edge up 1% in May despite weak non-food demand

Non-food sales continued to struggle, declining by 1.1 per cent—unchanged from the previous year. In-store non-food sales dropped by 0.9 per cent, showing a slight improvement from the 2.6 per cent fall in May 2024, while online non-food sales slipped by 1.5 per cent, reversing a 1.5 per cent rise seen last year.

The online penetration rate for non-food items held steady at 35.9 per cent, unchanged from May 2024, signalling continued stability in the e-commerce share of retail spending.

“Consumers put the brakes on spending, with the slowest growth in 2025 so far. This was due largely to declines in non-food sales, as fashion and full price big-ticket items were held back by lower consumer confidence,” Helen Dickinson, chief executive of the BRC, said in a press release.

“Retailers are grappling with the £5 billion in extra costs from higher National Insurance contributions and wages, which kicked in during April. They also face an additional £2 billion later this year from new packaging taxes and remain concerned about the consequences of the Employment Rights Bill. Ensuring the new Bill supports workers’ rights without undermining retailers’ ability to continue to provide jobs and investment in people will determine whether government achieves economic growth across the country or not,” Dickinson added.

Linda Ellett, UK head of consumer, retail & leisure, KPMG, said: “While the sunshine continued, the pace of retail sales growth didn’t in May. Early seasonal purchases were likely a factor, as was a dampening of some spending appetite as households reflected upon the recent combination of essential bill rises. But May still saw slight growth, driven mainly by food and drink, with non-food purchases falling overall. Travel demand for the summer months ahead looks healthy, so retailers will be hoping June sees an upturn in related spending as people begin to think about what they want to pack in their suitcase.”

Fibre2Fashion News Desk (KD)