The spring sunshine in May helped push UK retail sales into positive territory for the first time since March, according to the British Retail Consortium’s (BRC) retail sales monitor.
Sales values in May rose 1.9 per cent on a like-for-like basis, compared with a 1.8 per cent rise in May last year. The positive performance followed year-on-year declines in March and April. Total sales climbed 4.6 per cent during the month.
The figures represent a 0.5 per cent like-for-like fall in the three months from March to May year on year and a 2.1 per cent rise in total sales during the three-month period.
Despite the positive performance during May, the BRC said that “underlying trade remained tough, with widespread discounting” and that the sunshine “boosted sales growth”.
Clothing reported year-on-year growth for the first time since August. Sales of footwear, outdoor leisure and gardening equipment also increased. Food sales were up strongly on last year. Furniture and larger homewares declined year on year, despite widespread discounting.
Yesterday, the BRC reported that consumer confidence has dropped to its lowest level in four years, as rising costs and fears over the property market take their toll.
Compiled by Nielsen and the BRC, the consumer confidence index has fallen to 79, compared with 91 this time last year – its lowest level since the index began in 2003.
BRC director-general, Stephen Robertson said: “We are not out of the woods yet. The economic fundamentals remain weak.”
Head of retail at KPMG, Helen Dickinson said: “There will be few hailing May’s results as the benchmark for the coming months. The pressures on consumer retail spending continue.”
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