The quantity of goods bought (volume) in retail sales is estimated to have risen by 0.4% in the three months to May 2026 compared with the three months to February 2026, the latest figures from the ONS reveal. Non-food stores’ sales volumes rose, with department stores performing well in May because of the good weather. Also within non-food stores, computer and telecoms retailers continued to grow following product releases in March 2026. Non-store retailers rose following strong March and May periods.
Retail sales volumes are estimated to have risen by 1.2% in May 2026. This follows a fall of 1.0% in April 2026 (revised up from a 1.3% fall in our previous bulletin), and a rise of 0.7% in March 2026 (revised up from a 0.6% rise in our previous bulletin). Retailers suggested that promotions and the hot weather in May increased sales volumes for non-store retailers and department stores.
Jacqueline Windsor, head of retail at PwC UK, said: “At face value, retail sales surprised on the upside in May. Headline retail sales volumes excluding petrol grew by 1.2% compared with the previous month, and a respectable 4.6% compared with the same time last year. Taking into account inflation, that means that UK retailers saw 6.8% more in their tills compared with last May, which is the strongest year-on-year growth since June 2023.
“However, last month
“The high street itself did not benefit though, with footfall declining and online retailers reaping the rewards. Penetration of internet sales jumped from 28.1% in April to 28.8% in May, which was the same as in March, and higher than at any point since the end of the pandemic in 2021.
“Stepping back, it’s no coincidence that inflation at 2.8% was also lower than expected last month, as retailers kept a lid on prices to encourage shoppers to clear seasonal stock after a weak April. This kept shoppers’ buying power a whisker ahead of slowing wage growth at 2.9%, also announced this week. This should maintain the retail sales momentum into June, helped by the continuing warm weather and World Cup fever.
“But, as inflationary pressures grow later in the year, particularly on essentials like energy and food, it is inevitable that shoppers will need to tighten their belts. For retailers, the hope is that early summer did not prove to be a false dawn after a challenging spring, and that any slowdown rebounds in time for the critical run-up to Christmas.”
“The combination of two bank holidays and a heatwave led to sales growth in May across most retail categories following a fall in April. Despite geopolitical unpredictability, one of the warmest Mays on record encouraged consumers to come out and spend on new outdoor items and clothing for their summer wardrobes.
“These results will be a relief to retailers and with consumer confidence unchanged in June after being better than expected in May, brighter times may lie ahead. With some resilience in households’ personal finances, the end of geopolitical tensions and World Cup fever kicking in, we could see spending continuing to improve. Consumers may start enjoying more seasonal splurges including in the more discretionary categories.”
