Retail spending growth has slowed to its slowest rate so far this year, with Brits holding back on ‘non-essential’ items due to concerns over the economy.
Retail sales rose just 1% in May compared to the same month last year, the lowest rate in 2025 and below this year’s 2.5% average, according to figures from the British Retail Consortium (BRC).
Food was the main driver of growth with sales up 3.6%, supported by a run of bank holidays and seasonal events including football tournaments.
However, non-food spending slipped by 1.1% with online sales under the most pressure.
“Consumers put the brakes on spending, with the slowest growth in 2025 so far,” said Helen Dickinson, CEO of the BRC. “Fashion and full-price big-ticket items were held back by lower consumer confidence.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, which helps compile the BRC data, said many shoppers made seasonal purchases earlier in the spring due to the good weather, contributing to the slowdown in May.
She also noted the recent increases in household bills likely dampened shoppers’ willingness to spend.
“People can only spend a pound once, and with inflation nudging up after the ‘awful April’ price hikes, it’s understandable that consumers were feeling a bit fragile in May,” said Danni Hewson, head of financial analysis at AJ Bell.
“It’s clear consumers are still prioritising value as the pressure on their budgets lingers.”
Barclays released similar figures last week showing credit and debit card spend grew by just 1% in May, the slowest rate in four years.
Brits reined in particularly on takeaways and fast food, with the category recording its first decline since May 2020. About 44% of people said they are reducing their discretionary spending with more than half noting takeaways as their number one cutback.
No comments yet