UK's retail sector bounces back in May 2023: BRC-KPMG

In terms of like-for-like retail sales, the UK saw a positive shift of 3.7 per cent in May 2023, overturning a drop of 1.5 per cent witnessed in the same month of the previous year. Although this is slightly below the three-month average growth of 4.6 per cent, it is above the 12-month average growth of 3.1 per cent.

Non-food retail sales have also demonstrated a positive trend. Over the three months leading up to May 2023, non-food sales increased 0.7 per cent on a total basis and 0.5 per cent on a like-for-like basis. This trend outperforms the 12-month total average growth of 0.5 per cent. Notably, non-food retail sales experienced a year-on-year growth for the month of May, as per the BRC-KPMG report.

In-store non-food sales enjoyed a rise over the three months to May, showing an increase of 2.9 per cent on a total basis and 2.2 per cent on a like-for-like basis. These figures, however, are slightly below the total 12-month average growth of 3.7 per cent.

However, the news was not as promising for online non-food sales. May 2023 saw a decline of 3 per cent compared to a sharper drop of 8.5 per cent in May 2022. While the decline was steeper than the three-month average decrease of 2.8 per cent, it was less significant than the 12-month decline of 4 per cent.

Moreover, the proportion of non-food items purchased online, also known as the penetration rate, witnessed a slight dip. In May 2023, this rate decreased to 36.3 per cent from 37.1 per cent recorded in May 2022.

“The trio of bank holidays failed to get shoppers spending as sales growth slowed to its lowest level in six months. While food sales got a boost from the Coronation weekend, this was not sustained for the rest of the month. Meanwhile, growth in discretionary spend continued to tumble as the high cost of living squeezed households. There was cause for some optimism, however, as brighter weather at the end of the month led to a much-needed pick-up in summer fashion sales, as well as gardening and DIY products,” said Helen Dickinson, chief executive.

Paul Martin, UK head of retail, KPMG, said: “Despite warmer weather, a national celebration and month of bank holidays, retailers saw pretty mild growth in May with sales figures up just 3.9 per cent on last year, and lower than the 5 per cent growth seen in April.

“High street retailers saw more categories slip into negative sales territory last month. The gloom continued for online retailers with just four categories registering positive sales figures and total sales down by 3 per cent.  Online penetration rates continued to slide, sitting at 36 per cent, as consumers return to bargain hunting in store.”

Fibre2Fashion News Desk (DP)