May UK spending falters, consumers cut back on fashion say Barclays, BRC

Fashion Network

10-06-2025

The UK's consumer spending and retail spending reports are coming in for May and they don't look that impressive. On Tuesday, Barclays released its general consumer spending data for discretionary categories and the British Retail Consortium/ KPMG their retail sales numbers, with both showing anaemic growth year on year last month.
First Barclays. It said consumer card spending was up just 1% in May compared to the same month a year earlier. It had seen 4.5% growth in April (partly boosted by sunny weather and Easter). But this time the weak growth didn't come anywhere near the latest CPIH inflation figure of 3.5%.
That said, May's two Bank Holidays and record spring sunshine supported seasonal categories like pharmacy, health and beauty (+12%), and travel (+3.7%), yet this was offset by wet weather in the latter half of the month, amid consumers cutting back and a fall in consumer confidence.
Confidence in household finances declined three percentage points to 67%, while the ability to spend on non-essentials dropped to 56%. In response, nearly half of consumers (46%) say they're cutting back on discretionary spending. And even more painful for fashion retail, clothing/accessories is the most common category being reined in.
Card spending on clothing rose just 0.9% in May, although the volume of clothing purchases was up 3.8%. This suggests shoppers are still refreshing their wardrobes, but switching to cheaper items or brands, or perhaps that retailers are keeping a lid on prices and cutting them as well in an attempt to shift stock.
Despite exercising financial caution, two in five UK adults say they still enjoy treating themselves regularly but are finding budget-friendly options. Popular choices include waiting for sales (41%), opting for smaller, affordable treats (36%, which could boost beauty), and setting aside savings specifically for occasional indulgences (24%).
As for the BRC/KPMG report, despite focusing on retail spending specifically rather than general consumer spending, it showed similar patterns to Barclays.
In the four weeks from 4 May to 31 May, UK total retail sales increased by 1% year on year and non-food sales actually decreased by 1.1%.
In-store non-food sales fell 0.9% and online they were down 1.5%. The online penetration rate (the proportion of non-food items bought online) was flat at 35.9% in May.
Helen Dickinson, CEO of the British Retail Consortium, said: '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.'
And Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, added: '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. 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.'