Retail sales volumes are estimated to have risen by 0.3% in May 2023, following a rise of 0.5% in April 2023, the latest retail sales figures from the Office for National Statistics (ONS) reveal.
Non-store retailing sales volumes rose by 2.7% in May 2023 because of strong sales by online retailers selling outdoor-related goods and summer clothing; this was boosted by the warm weather in the second half of the month.
Automotive fuel stores sales volumes rose by 1.7% in May 2023, following a fall of 1.7% in April 2023; sales volumes were 9.5% below their pre-coronavirus (COVID-19) February 2020 levels.
Food stores sales volumes fell by 0.5% in May 2023, with some anecdotal evidence of increased spending on takeaways and fast food because of the extra bank holiday, however retailers also indicated that increased cost of living and food prices continued to affect sales volumes.
Non-food stores sales volumes fell by 0.2% in May 2023, following a rise of 0.9% in April.
Commenting on today’s ONS retail sales figures, Kelly Miely, retail partner at Deloitte, said: “A trio of Bank Holidays, combined with the arrival of warm weather, encouraged consumers to spend on summer clothing and outdoor goods. This led to an unexpected lift in retail sales volumes in May.
“Despite the sunshine and official data showing some strong annual pay increases, the situation remains difficult for both retailers and consumers. Consumers in particular are alive to persistent inflation driving stubbornly high food prices.
“A price sensitive consumer is likely to stay with retailers that remain competitive by offering good value product ranges and cutting price of core items.”
Mónica Mercado Páez, head of AI and Data at Virgin Media O2 Business, said: “Today’s ONS data reveal May delivered some of the eagerly anticipated uplift in retail sales, as Brits celebrated May bank holidays and the King’s Coronation in spite of economic pressures.
“With our Virgin Media O2 Business Movers Index finding that 44% of businesses expected revenue spikes over the coronation weekend, retailers remain optimistic that spending and sales will increase – despite ongoing economic challenges.
“While inflation holds strong, consumer confidence could increase quickly as we enter the summer months.”
Samantha Phillips, partner at McKinsey & Company, comments: “Retail sales value has grown month on month by 0.3%, for the second time since April. Year on year, volumes are still down by 2.1% – although value is significantly greater by 4.8% driven by continued underlying inflation.
“The shift towards good weather has boosted volume – primarily through online purchases, kicking off shoppers’ summer clothing sprees and a need for outdoor equipment. The trend for fuel has also reversed, verses April likely due to falling prices and an increase in travel post-industrial action.
“Food continues to be significantly impacted byinflation with volumes falling 0.5% in May, off the back of green shoots of growth in April. This may be driven by a combination of different buying patterns outside of food retailing given multiple bank holidays and consistently high food prices – like sugar (49.8%), milk, cheese, and eggs (27.4%) and oils and fats (22.6%), flour and other cereals (23.6%).”
“Non-food, offline retailing also saw volumes fall,underpinning this was watches, jewellery and other new goods, e.g., art. This may indicate consumer sentiment is still low and shoppers are opting to hold back on discretionary purchases to focus on their more immediate needs.”
