Retail sales volumes are estimated to have fallen by 2.7% in May 2025, the largest monthly fall since the end of 2023, according to the latest figures from the Office for National Statistics (ONS).
“This was mainly due to a dismal month for food retailers, especially supermarkets, following strong sales in April,” explained Hannah Finselbach, ONS senior statistician.
Sales across department, clothing, household and other non-food stores also fell by 1.4% over the month. ONS said this was mainly due to falls in clothing and household goods stores such as hardware, paints and glass retailers.
Retailers warned of reduced footfall, with consumers completing home projects earlier than usual this year because of good weather, leading to lower sales in May.
However, Retail Economics responded that this shift highlighted “households putting value at the centre of spending decisions and pulling back on non-essential purchases”.
Nicholas Found, head of commercial content at Retail Economics, commented: “The cost of living remains the dominant concern for households. An uptick in food inflation is especially visible to shoppers, acting as a psychological anchor on confidence that hits non-essential retail spending.
“Households are deferring spending on full-price fashion, big ticket home items and other discretionary goods, instead prioritising travel and experiences into the summer.
“Retailers are now in the precarious position of needing to stimulate demand without eroding margins. But with a £6.5 billion surge in operating costs this year, driven by increases in employment costs, business rates and utilities as our research with Barclays Corporate Banking shows, many are entering the summer trading period under significant pressure.”
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