ONS data shows retail sales volumes rose by 0.3 per cent in May 2023, following a rise of 0.5 per cent in April.
There was a particularly sharp increase in non-store retailing sales volumes which increased by 2.7 per cent in May 2023 because of strong sales by online retailers of outdoor-related goods and summer clothing; this was boosted by the warm weather in the second half of the month.
However, food stores sales volumes fell by 0.5 per cent in May 2023 as retailers indicated that increased cost of living and food prices continued to affect sales.
Phil Monkhouse, head of sales at global financial services firm Ebury, said: “Three bank holidays, the Coronation and warmer weather drove shoppers to the tills and online checkouts in the May, defying the enveloping economic gloom around the nation.
“Online retailers particularly benefited with shoppers beginning to jet off on holidays and get ‘summer-ready.’ It demonstrates the buying potential that many still possess despite the continued cost of living crisis and ticking mortgage timebomb.
“Since May the economic optimism has deteriorated further with storm clouds looming over the UK. Interest rates look set to go even higher, piling on the pain for mortgages which should dampen demand and push retail sales down even further.
“For retailers, currency volatility could possibly return with the pound likely to benefit from continued rate hikes while the global fight against inflation appears to have more twists and turns to come. Hedging against this risk will be key for shop owners and online salespeople to manage budgets, ensure continuity of supply and flourish through these difficult times.”
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