UK retail weak in May says ONS data, fashion lags but reasons for June optimsim abound

Fashion Network

20-06-2025

Non-food stores sales volumes — the total of department, clothing, household and other non-food stores — fell by 1.4% over the month, mainly because of falls in clothing and household goods stores. Retailer comments mentioned reduced footfall and consumers having completed home projects earlier than usual this year because of good weather, leading to lower sales in May.
Meanwhile online spending values fell by 1% month on month and 2.5% year on year. Total value spend across in-store and online fell by 2.4% over the month and as a result, the proportion of sales made online rose from 26.8% in April 2025 to 27.2% in May.
So nothing to write home about there. But what did analysts and industry insiders think of it all?
Deann Evans, MD EMEA, at online shopping giant Shopify, said retailers will be disappointed, especially after consecutive rises. She said the 3.4% inflation rate may have been partly to blame, or perhaps the lasting effects from April's increases in annual domestic bills and National Insurance contributions.
But she also sees 'reason to be optimistic that the summer months and warmer weather will inspire increased consumer spending and a return to sales growth. According to our Shopify data for May, UK consumers were busy preparing for aquatic fun with sales of Pool Floats & Loungers (+101%), Child Swimming Aids (+74.7%) and Swim Goggles & Masks (+62.4%) all rising significantly compared to April.
'Perhaps even more impactful will be the cultural moments that summer brings. Just like we saw with Taylor Swift's Eras tour last year, the 'Beyoncé Effect' is in full swing as she brings her Cowboy Carter tour to the UK. Our data reveals a significant increase in the sales of western fashion items last month compared to May 2024, such as denim shorts (+52%), cowboy hats (+288%) and belts (+62%). With Glastonbury Festival and the Oasis tour close on the horizon, there is a significant opportunity here for retailers to capitalise — provided they have the right tools and systems in place. A strong digital presence and social media strategy are particularly key to winning the lottery ticket of celebrity influence and having the right people notice your products, and retailers must keep this front of mind this summer.'
And Jim Rudall, regional director EMEA at email and marketing automation platform Intuit Mailchimp also said it was a disappointing month, 'especially with high expectations for a boost around the May bank holidays — which our New E-Commerce Calendar report ranks as the top two shopping moments for UK consumers in May (based on spending propensity).'
But he too sees some bright spots on the horizon given the aforementioned cultural moments plus Royal Ascot and the FIFA Club World Cup.
That New E-Commerce Calendar he mentioned revealed major entertainment events and music festivals prompted 15% of shoppers to make purchases in the last two years, 'offering brands the chance to ride a cultural wave and flex their personalities'.
And of course Father's Day will impact June with Intuit Mailchimp research having identified it 'as the most significant shopping moment for June'.
Meanwhile, Oliver Vernon-Harcourt, head of retail at Deloitte, said:'For the first time this year, retail sales fell more than expected, as two bank holidays and further good weather were not enough to entice spending. A late Easter combined with the sunniest April on record brought some seasonal sales forward, [and] continued inflationary pressures from food, furniture and household goods hampered sales volumes.
'Overall, consumers remain cautious in the face of persistent inflation, increased utility costs and ongoing geopolitical uncertainty. While this transpired into fewer purchases in May, there is a broader picture of improving household finances. Consumers have been saving at one of the highest levels on record, and with robust real wage growth, this could generate some helpful tailwinds for the retail sector throughout the rest of 2025. With warm weather set to continue, retailers will hope to see a boost from the sale of summer food, clothing and outdoor offerings, resulting in a return to growth in the months ahead.'
And Jacqueline Windsor, Head of Retail at PwC UK highlighted how the 'gloomier weather also impacted demand for new season's fashion, with clothing retailers reversing a quarter of improving sales performance, making it the worst-performing category in May.
'The fact that retail sales fell back in May was not a surprise given the unusually strong performance the previous month. However, it does underline the fragility of consumers' spending power and the retail sector in the current economic climate.'