UK high street sees pickup in sales in May

Britain’s high street saw a marked improvement in sales volumes in May, according to the British Retail Consortium and KPMG’s Retail Sales Monitor.

It shows that total UK retail sales values rose 3% year on year in May, compared to a 0.8% increase year on year in May, on a like for like basis, which strips out the effect of extra floor space. In April total sales fell 0.2%, while like for like sales were down 2.3% year on year.

Food sales returned to growth after a fall in April, while the hot weather provided a boost to clothing, footwear, DIY and leisure, and homewares to a degree. However, the BRC reports that sales of big ticket items struggled as consumers remained uncertain about job security and income prospects.

Non-food non-store sales (internet, mail-order and phone sales) in May were 21.9% higher than a year ago, up from 15.9% in April. Although the best since December, May's gain was against relatively weak growth in May 2009.

Stephen Robertson, the director general of the BRC, says: "The sunnier second half of May provided a welcome boost to overall sales. The warmer weather combined with discounts and promotions encouraged spending on clothing, footwear, outdoor DIY and gardening. The run-up to the World Cup helped sales of televisions, although this was largely discount-driven. After April's dip, food sales returned to more normal levels."

However, KPMG's head of retail Helen Dickinson warns that the forthcoming UK Budget could cause a shift in consumer spending patterns which could be damaging to the retail sector.