- Retail sales jumped 1.2% in May following a 1% fall in April
- Hot weather boosted demand for items like paddling pools and fans
- Department stores and online retailers benefited the most
Danni Hewson, AJ Bell head of financial analysis, comments on the latest UK retail sales figures:
“A bit of sunshine does wonders for people’s moods and often translates to increased sales in retail and hospitality. But May’s scorching temperatures made some purchases more of a necessity than just a nice to have.
“Splashing out on new paddling pools kept kids cool and occupied, and as night-time temperatures made it impossible to sleep many of us splurged on a fan or two just so we could be comfortable.
“The big rise in retail sales will have been welcomed by the industry, but one month doesn’t tell the whole story and it’s important to consider sales over a longer period.
“In the three months to May growth was positive but came in at a more subdued 0.4%, with sales racked up in May helping to offset the falls seen in April. Scorching temperatures also meant that many of us didn’t want to venture far from home, instead choosing to make our purchases online rather than hitting local high streets.
“The allure of new tech was still tempting people to splash out, and a sunny bank holiday provided the perfect excuse for a BBQ feast and new clothes to wear.
“But even whilst the sunshine put consumers in an upbeat mood, people were still mindful of where they spent their money. It’s notable the ONS points to promotions as being a big driver for a chunk of May’s spending, with some people waiting for offers before getting an upgrade on their phone.
“With summer making a welcome return just as football fever grips the nation, retailers will be cautiously optimistic that the trend may continue to be positive, especially if the cost of living doesn’t get squeezed as much as had been feared.”
