UK Retail Sales Experience Sharpest Decline in May 2024
British retail sales volumes saw their largest decrease since December 2023, plunging 2.7% in May. This is a significant drop compared to the predicted 0.5% fall. Sales reached their lowest since April 2024, following a surge spurred by sunny weather and positive consumer sentiment earlier in the year.
In a significant economic shift, British retail sales volumes recorded their sharpest decline since December 2023, with a drop of 2.7% reported in May, according to the Office for National Statistics. This figure starkly contrasts with the 0.5% decline anticipated by economists in a Reuters poll.
Compared to the previous year, sales volumes were down by 1.3%, marking the largest decrease since April 2024 and falling short of the forecasted 1.7% annual growth. This reversal follows a period of strong sales growth in April, driven by favorable weather conditions and buoyant consumer sentiment as indicated by GfK's June data.
Despite the overall decline, reports from key retailers present a mixed picture. The British Retail Consortium signaled a slowdown in sales growth for May, reflecting consumer purchases made earlier in the spring. Major players like Tesco exceeded sales expectations, whereas Poundland, facing competitive market pressures, announced plans to close 68 stores.
(With inputs from agencies.)
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