PwC comments on May 2024 ONS retail sales figures

Commenting on the Office of National Statistics retail sales index for May 2024, Lisa Hooker, Leader of Industry for Consumer Markets, PwC UK, said: 

“After April’s rainfall put a dampener on the previous month’s results, there will have been relief that retail sales recovered somewhat in May. Headline sales volumes rose by 2.9% compared to April, when they fell by a revised 1.8%.

“However, in line with other industry reports, the picture is less rosy compared with May 2023. With an extra trading day in 2024 compared to 2023, when there was an additional Bank Holiday for the King’s Coronation - and the first full month benefit of higher National Living Wage and lower National Insurance - we would have expected a larger improvement in sales volumes.

“In the event, grocery sales volumes declined by -1.2% (with 1.2% more pounds in the till due to inflation), while non-food sales volumes only grew by 1.5%. The continued unseasonal weather particularly hit fashion sales, which fell by 2.6% in volume terms compared with last year. This month has already seen several fashion retailers begin their summer sales early in order to help clear excess seasonal stock.

“Not surprisingly, the thunder and rain also drove more shoppers to buy online with penetration rising to 27.2%, almost as high as it was during the last bout of wet summer weather last July.

“With improving weather and the start of a summer of sport in June, retailers will be hoping that May’s recovery sustains during the coming months, and finally sees year-on-year growth turn into positive territory.

“However, it may take a few more months for lower inflation and the prospect of lower interest rates in August to coax consumers to hit the shops with their hard-earned cash. But will the tide turn in time for the all important run-up to Christmas?”