Retail sales in the UK dropped by 2.7% month-over-month in May 2025, a sharper decline than the expected 0.5% fall, following an upwardly revised 1.3% increase in April. This was the steepest monthly drop since December 2023, driven largely by a 5% fall in food store sales—the biggest decline since May 2021—due to reduced supermarket sales. Retailers cited inflation, weaker consumer spending, and lower sales of alcohol and tobacco products as key factors.
Non-food store sales volumes also fell by 1.4%, attributed to weaker sales in clothing and household goods stores, including hardware and paint retailers. According to retailers, reduced foot traffic and the early completion of home improvement projects—helped by favorable weather earlier in the year—contributed to weaker sales in May. Excluding fuel, retail sales declined 2.8% from the previous month. On an annual basis, sales dropped 1.3%, missing forecasts of a 1.7% increase and marking the largest annual fall since April 2024.
