Retail sales in the UK saw their steepest monthly drop since December 2023, according to figures released on Friday by the Office for National Statistics (ONS). In May, sales volumes fell by

2.7%, a far sharper decline than the 0.5% drop forecasted in a Reuters poll.

Compared to a year earlier, sales volumes were down 1.3%, marking the biggest annual decrease since April 2024 and missing expectations for 1.7% growth.

The decline follows a strong performance in April, when warm weather and improved consumer sentiment drove spending on food, clothing, and home goods. But May saw a clear pullback, as consumers appeared to have brought forward many of their summer purchases.

Consumer confidence remains relatively high, with GfK’s June data showing the strongest sentiment so far this year. However, signals from retailers are mixed.

The British Retail Consortium reported a slowdown in sales growth for May, echoing concerns that April’s surge was a one-off. Among individual retailers, Tesco outperformed expectations in its first quarter, despite intense competition. Meanwhile, discount chain Poundland announced plans to close 68 stores as it struggles in the current environment. Photo by Acabashi, Wikimedia commons.