Last month’s late-May heatwave delivered a timely boost to UK retailers, with consumers rushing to spend on barbecues, fans, and sandals as temperatures soared.
Retail sales climbed 3.7 per cent year on year in May, comfortably outpacing the full-year average of two per cent, according to the British Retail Consortium.
The figure marks a sharp reversal from April, when retail sales fell by three per cent amid falling consumer confidence linked to inflationary fears surrounding the Iran war.
Many shoppers chose to browse and buy from home, with online non-food sales surging more than 10 per cent year on year, dwarfing the annual average growth rate of 1.2 per cent.
Outdoor toys, sunglasses, and barbecue food were among the most popular online purchases, as consumers ordered from their gardens during the warm spell.
Food sales also benefited, rising 3.9 per cent in the year to May, a notable turnaround against a 1.1 per cent decline recorded in the same period the previous year.
Linda Ellett, UK consumer head at consultancy KPMG, said the record temperatures were a direct catalyst for the strong spending figures seen across multiple categories.
She said: “Clothing and footwear sales grew — some for the first time since the January sales.”
Ellett added: “As we move into summer season, retailers and hospitality businesses will be hoping the good weather continues and that the World Cup boosts related spending.”
She also noted that “getting new items into the suitcases of holidaymakers is also now key to the summer performance of many retailers.”
Despite the encouraging numbers, industry leaders were quick to caution that the uplift masks serious structural pressures bearing down on the retail sector.
Helen Dickinson, the BRC’s chief executive, warned that May’s sales performance should not be taken for granted by policymakers.
“If government wants to keep inflation in check and support growth, it must urgently tackle the taxes and levies that are driving up energy bills,” she said.
“Without action, cost pressures will build further, limiting retailers’ ability to invest and pushing prices up for customers,” she added.
The employment cost burden is also weighing heavily on major retailers, following the publication of the Milburn review, which warned that the welfare state and social media are driving record youth unemployment levels.
The review’s author said the situation is pushing the UK towards “economic catastrophe,” adding further pressure on businesses already grappling with rising operational costs.
Lord Simon Wolfson, boss of retail giant Next, said in May that the government’s crackdown on zero-hour contracts will make it “much harder” for the firm to offer more hours to its staff.