Grocery sales flop in May, latest retail figures show

A slump in food store sales in May has powered the worst monthly fall in retail sales since December 2023.

UK retail sales fell by 2.7% in May, after April’s modest 1.3% growth, according to ONS estimates released this morning (20 June).

A drop in supermarket sales of 5% – the largest monthly fall in four years – was behind the slump, largely due to lower sales volumes in supermarkets.

Retailer comments highlighted inflation and customer cutbacks, as well as reduced sales of alcohol and tobacco products, the ONS said.

May’s disappointing figures came after a surprisingly buoyant April, where food stores sales grew 4.7% thanks in part to the unusually fair weather.

The see-saw in consumer spend was also reflected in the BRC’s retail footfall figures earlier in June, which reported an overall fall in footfall of 1.7% in May, down nine points from April’s 7.2% upswing, as shoppers stayed home.

Even two bank holidays and further good weather were unable to entice consumers out as inflation continued to bite – though this should not cause despair among retailers, according to Oliver Vernon-Harcourt, head of retail at Deloitte.

“Consumers have been saving at one of the highest levels on record, and with robust real wage growth, this could generate some helpful tailwinds for the retail sector throughout the rest of 2025,” he said. 

“With warm weather set to continue, retailers will hope to see a boost from the sale of summer food, clothing and outdoor offerings, resulting in a return to growth in the months ahead.”

The BRC’s director of insight, Kris Hamer, however, said the figures still reflected a painful period for shops.

He added: “This weak consumer demand comes at a particularly bad time as retailers are having to grapple with billions of pounds of extra costs this year following the Chancellor’s budget last October. 

“The future of business rates reforms is still unclear, but It is vital that it does not result in any shop paying more. Otherwise many retailers could be forced to shut down stores, which will impact jobs and local communities, and ultimately the UK’s economic growth.”

Excluding food stores, other retail fell by a more modest average of 1.4% in May. Online retailers were also hit by lower spending, as sales fell by 1%.