Latest news with #BankHolidays
Yahoo
2 hours ago
- Business
- Yahoo
UK retail growth slows as non-food sales dip in May 2025
UK retail sector growth faced a slowdown in May 2025 as consumer spending decelerated, according to data from the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. The sector experienced a modest increase of 1% year-on-year (YoY) in total retail sales, with food sales showing a stronger performance compared to non-food categories. Between 4 May and 31 May, food saw a 3.6% increase in sales YoY, compared to a 2.8% increase in May 2024. The growth was bolstered by the end of football tournaments and two Bank Holidays, which encouraged expenditure on barbecues and picnics. Non-food sales saw a 1.1% YoY dip in May, consistent with the decline experienced in May 2024. In-store non-food sales fell 0.9% against a steeper decline of 2.6% in the previous year. Online non-food sales also dropped 1.5% in a stark contrast to the growth of 1.5% seen in May 2024. The online penetration rate for non-food items remained unchanged at 35.9% - the same as in May 2024. This indicates a stabilisation in the proportion of non-food purchases made online. BRC chief executive Helen Dickinson stated: '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. Gaming bucked the trend, thanks to some popular new releases.' Dickinson also noted the current financial pressures faced by the retailers, with an additional £5bn ($6.7bn) in costs due to higher National Insurance contributions and wages that came into effect in April. They anticipate a further £2bn in costs from new packaging taxes later in the year. Concerns are also mounting over the implications of the Employment Rights Bill. Dickinson added: "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." As summer 2025 approaches, there is a positive outlook for travel demand, which retailers hope will translate into increased consumer spending. With holiday planning underway, June may bring a boost in sales as customers shop for their travel necessities. Institue of Grocery Distribution CEO Sarah Bradbury stated: 'After the sunniest spring on record and a string of Bank Holidays, our Shopper Confidence Index rose by five points in May, helped by the prospect of lower energy bills and renewed momentum in UK trade agreements with the US and EU. This uplift marks a welcome shift from 'awful April', but beneath the surface, confidence remains fragile. 'Our research shows that shoppers are still navigating financial uncertainty and continue to rely on money-saving tactics like planning ahead and buying on promotion. While the mood has brightened, we've yet to see this translate into meaningful changes in behaviour. With the external environment still volatile, shoppers remain cautiously optimistic, but not necessarily ready to spend freely.' BRC recently released a report highlighting the significant decline in retail employment, with job loss exceeding 350,000 since 2015. "UK retail growth slows as non-food sales dip in May 2025" was originally created and published by Retail Insight Network, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Belfast Telegraph
3 hours ago
- Business
- Belfast Telegraph
Consumer spend slows to lowest growth of 2025
Sales of fashion and full-price big ticket items were held back by faltering consumer confidence, although gaming bucked the trend due to popular new releases, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. Total retail sales across the UK were up by 1% year-on-year in May, against growth of 0.7% a year ago, driven by food sales increasing by 3.6% on the back of football tournaments and two bank holidays, prompting spending on barbecues and picnics. Non-food sales were down 1.1% year-on-year in May. BRC chief executive Helen Dickinson said: 'Consumers put the brakes on spending, with the slowest growth in 2025 so far. '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.' Linda Ellett, UK head of retail and leisure consumer markets at 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.' Separate figures from Barclays also show consumer card spending grew just 1% year-on-year in May, down from April's 4.5%. The bank said May's two Bank Holidays encouraged discretionary spending, although this was offset by wet weather in the second half of the month, and by consumers cutting back amid falling confidence in personal finances. Spending in pharmacies and on health and beauty recorded the highest growth in May — up 12% — linked to the UK's sunniest spring on record and a surge in NHS website visits for hay fever advice. Airline spending jumped by 9.7% as consumers made summer plans, while garden centres saw a 7.2% increase. Karen Johnson, head of retail at Barclays, said: 'Consumers are clearly becoming more value-conscious as financial pressures persist, but they're still finding joy in the everyday — whether that's a small treat, a cinema trip, a garden project, or a carefully planned getaway. 'The double Bank Holidays in May and record sunshine will have given non-essential spending a helpful boost, but this was largely outweighed by the rainy weather in the second half of the month, while longer-term uncertainty continues to shape how and where people choose to spend.'
South Wales Guardian
11 hours ago
- Business
- South Wales Guardian
Consumer spending slows to lowest growth of the year amid falling confidence
Sales of fashion and full-price big ticket items were held back by faltering consumer confidence, although gaming bucked the trend due to popular new releases, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. Total retail sales across the UK were up by 1% year-on-year in May, against growth of 0.7% a year ago, driven by food sales increasing by 3.6% on the back of football tournaments and two bank holidays, prompting spending on BBQs and picnics. Non-food sales were down 1.1% year-on-year in May. BRC chief executive Helen Dickinson said: 'Consumers put the brakes on spending, with the slowest growth in 2025 so far. '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.' Linda Ellett, UK head of retail and leisure consumer markets at 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.' Separate figures from Barclays also show consumer card spending grew just 1% year-on-year in May, down from April's 4.5%. The bank said May's two Bank Holidays encouraged discretionary spending, although this was offset by wet weather in the second half of the month, and by consumers cutting back amid falling confidence in personal finances. Spending in pharmacies and on health and beauty recorded the highest growth in May – up 12% – linked to the UK's sunniest spring on record and a surge in NHS website visits for hay fever advice. Airline spending jumped by 9.7% as consumers made summer plans, while garden centres saw a 7.2% increase. Karen Johnson, head of retail at Barclays, said: 'Consumers are clearly becoming more value-conscious as financial pressures persist, but they're still finding joy in the everyday – whether that's a small treat, a cinema trip, a garden project, or a carefully planned getaway. 'The double Bank Holidays in May and record sunshine will have given non-essential spending a helpful boost, but this was largely outweighed by the rainy weather in the second half of the month, while longer-term uncertainty continues to shape how and where people choose to spend.'
Rhyl Journal
11 hours ago
- Business
- Rhyl Journal
Consumer spending slows to lowest growth of the year amid falling confidence
Sales of fashion and full-price big ticket items were held back by faltering consumer confidence, although gaming bucked the trend due to popular new releases, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. Total retail sales across the UK were up by 1% year-on-year in May, against growth of 0.7% a year ago, driven by food sales increasing by 3.6% on the back of football tournaments and two bank holidays, prompting spending on BBQs and picnics. Non-food sales were down 1.1% year-on-year in May. BRC chief executive Helen Dickinson said: 'Consumers put the brakes on spending, with the slowest growth in 2025 so far. '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.' Linda Ellett, UK head of retail and leisure consumer markets at 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.' Separate figures from Barclays also show consumer card spending grew just 1% year-on-year in May, down from April's 4.5%. The bank said May's two Bank Holidays encouraged discretionary spending, although this was offset by wet weather in the second half of the month, and by consumers cutting back amid falling confidence in personal finances. Spending in pharmacies and on health and beauty recorded the highest growth in May – up 12% – linked to the UK's sunniest spring on record and a surge in NHS website visits for hay fever advice. Airline spending jumped by 9.7% as consumers made summer plans, while garden centres saw a 7.2% increase. Karen Johnson, head of retail at Barclays, said: 'Consumers are clearly becoming more value-conscious as financial pressures persist, but they're still finding joy in the everyday – whether that's a small treat, a cinema trip, a garden project, or a carefully planned getaway. 'The double Bank Holidays in May and record sunshine will have given non-essential spending a helpful boost, but this was largely outweighed by the rainy weather in the second half of the month, while longer-term uncertainty continues to shape how and where people choose to spend.'
Leader Live
12 hours ago
- Business
- Leader Live
Consumer spending slows to lowest growth of the year amid falling confidence
Sales of fashion and full-price big ticket items were held back by faltering consumer confidence, although gaming bucked the trend due to popular new releases, according to the British Retail Consortium (BRC)-KPMG Retail Sales Monitor. Total retail sales across the UK were up by 1% year-on-year in May, against growth of 0.7% a year ago, driven by food sales increasing by 3.6% on the back of football tournaments and two bank holidays, prompting spending on BBQs and picnics. Non-food sales were down 1.1% year-on-year in May. BRC chief executive Helen Dickinson said: 'Consumers put the brakes on spending, with the slowest growth in 2025 so far. '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.' Linda Ellett, UK head of retail and leisure consumer markets at 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.' Separate figures from Barclays also show consumer card spending grew just 1% year-on-year in May, down from April's 4.5%. The bank said May's two Bank Holidays encouraged discretionary spending, although this was offset by wet weather in the second half of the month, and by consumers cutting back amid falling confidence in personal finances. Spending in pharmacies and on health and beauty recorded the highest growth in May – up 12% – linked to the UK's sunniest spring on record and a surge in NHS website visits for hay fever advice. Airline spending jumped by 9.7% as consumers made summer plans, while garden centres saw a 7.2% increase. Karen Johnson, head of retail at Barclays, said: 'Consumers are clearly becoming more value-conscious as financial pressures persist, but they're still finding joy in the everyday – whether that's a small treat, a cinema trip, a garden project, or a carefully planned getaway. 'The double Bank Holidays in May and record sunshine will have given non-essential spending a helpful boost, but this was largely outweighed by the rainy weather in the second half of the month, while longer-term uncertainty continues to shape how and where people choose to spend.'
