Retail sales in the United Kingdom continued to strengthen in May, with data indicating steady monthly growth in consumer spending across both essential and discretionary categories, according to the latest British Retail Consortium (BRC) and KPMG retail sales monitor.
The figures, based on aggregated card spending activity, point to sustained resilience in household demand despite ongoing pressure from higher living costs and elevated interest rates.
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Retailers reported that growth was supported by improved weather conditions and seasonal purchasing, alongside continued demand for food and non-food items.
Helen Dickinson, Chief Executive at the British Retail Consortium, said: “May’s heatwave drove a surge in outdoor and summer goods.”
She added: “Clothing and footwear returned to growth as shoppers snapped up summer essentials like sandals and sunglasses.”
“Food sales were lifted by bank holiday barbecues,” she said, noting that warmer weather contributed directly to grocery demand.
Retailers also saw changes in shopping behaviour during the hot spell. Dickinson said: “As temperatures rose, many opted to shop online to avoid the heat, boosting online sales.”
While inflation has eased from its recent peak, it continues to shape purchasing behaviour, with consumers remaining price-sensitive and selective in their spending patterns.
Dickinson also cautioned against assuming continued momentum. “While the sunshine gave retail a welcome lift, this momentum should not be taken for granted,” she said. “Household finances remain under pressure, consumer confidence is still fragile, and many retailers continue to face rising costs.”
She added that policy intervention may be needed to support the sector: “If Government wants to keep inflation in check and support growth, it must urgently tackle the taxes and levies that are driving up energy bills.”
The latest update adds to evidence that UK retail activity has remained relatively stable through 2026 so far, even as broader economic growth remains subdued.
Consumer spending trends
The BRC retail sales monitor shows that consumer spending continued to rise in May compared with the previous month, extending a trend of gradual recovery in retail activity.
Growth was recorded across multiple categories, with food sales remaining a key driver of overall performance. Helen Dickinson highlighted seasonal demand effects, saying: “There was roaring trade in fans, lighter bedding, and outdoor toys.”
Non-food retail also showed signs of improvement, particularly in areas linked to seasonal demand. Retailers have pointed to more stable footfall and a modest increase in in-store purchases compared with earlier in the year.
Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, said: “The late Spring heatwave brought record temperatures in May and also heated up retail sales growth.”
She added that “clothing and footwear sales grew – some for the first time since the January sales.”
Ellett noted that hot weather influenced multiple categories, saying: “Hot days and nights increased fans and air con unit buying, while food and drink sales were up, as were garden related purchases.”
Industry data suggest that households are still prioritising essential goods, but discretionary spending has not contracted as sharply as some forecasts had expected.
Inflation and household pressure
Although inflation has moderated compared with previous years, its impact on real incomes continues to influence retail behaviour. Higher borrowing costs have also contributed to tighter household budgets, limiting the scope for non-essential spending.
Retailers continue to report that consumers are comparing prices more actively and shifting between brands and product types to manage costs. This has supported growth in value-oriented segments, while premium categories have seen more uneven demand.
Economic conditions remain mixed. Wage growth has provided some support to household purchasing power, but savings levels and disposable income vary significantly across consumer groups, contributing to uneven retail performance.
Outlook for UK retail
The near-term outlook for UK retail remains cautiously stable, with analysts expecting continued modest growth rather than a sharp rebound.
Sarah Bradbury, CEO at IGD, said: “The late May bank holiday heatwave boosted shopper activity, driving sales growth in the final week of the month.”
She added that “with forecasts pointing to further heatwaves due to El Niño and the added momentum of the upcoming World Cup, food and drink retail performance may benefit from improved shopper sentiment in the coming months.”
However, she warned of risks ahead: “The outlook beyond summer is more uncertain due to rises in the energy price cap from July and the risk of further increases later in the year.”
Retailers are also adapting to changing consumer behaviour by focusing on pricing strategies, promotions and operational efficiency. Digital channels continue to account for a significant share of non-food sales, reflecting the ongoing shift in how consumers shop.
The latest data from the British Retail Consortium reinforces the view that the sector is adjusting to a new equilibrium, shaped by slower inflation, persistent cost pressures and more measured consumer demand.
While conditions are not uniform across all categories, overall retail activity has remained resilient in a challenging economic environment.
