The UK's high street has experienced a welcome respite from its recent struggles, with retail sales volumes increasing by 1.2% in May, according to the Office for National Statistics (ONS). This marked recovery follows a 1% decline in April, which was partly attributed to consumer caution amidst geopolitical tensions. Notably, warmer weather played a significant role in this rebound, making May the third-warmest on record.
Non-food stores were the primary drivers of growth, as consumers sought products to combat the heat, with strong demand for outdoor furniture, paddling pools, and fans – often supported by warm-weather promotions. Online retailers saw a substantial 6.1% rise in sales volumes, their largest monthly increase since February 2025, indicating a sustained shift towards digital channels.
Department stores recorded positive figures, with volumes increasing by 2.7% over the three months to May, marking their most significant three-monthly rise since September 2024. Industry experts, such as Erin Brookes, European retail and consumer lead at Alvarez & Marsal, expressed optimism that this momentum could carry through the summer, potentially boosted by upcoming events like Wimbledon and the World Cup.
However, not all sectors fared well: food stores observed a 0.4% decline in sales volumes. This suggests that despite overall retail growth, many households remain under financial pressure from rising bills, housing costs, and volatile fuel prices. Analysts believe grocery volumes remain under pressure as consumers prioritise saving and are selective in their spending, focusing on value and promotions.
While the market is characterised by selective demand rather than a broad resurgence of consumer confidence, analysts caution that retailers face challenging conditions. They must balance government calls to support stretched households with rising operational costs. Nonetheless, potential easing of international tensions and major summer sporting events could provide further boosts to spending in the coming months.