UK retail sector sees encouraging signs of recovery in May
(MENAFN) In a promising turn of events, the UK's retail sales exhibited signs of recuperation towards the latter part of May, as reported by the British Retail Consortium (BRC). According to data released on Tuesday, the total retail sales in the country surged by 0.7 percent on an annual basis, marking a notable uptick in consumer activity.
Comparing this figure to last year's performance, total retail sales had experienced a more substantial growth of 3.9 percent in May, albeit falling below the 12-month average growth rate. This context underscores both the progress made and the challenges still faced by the retail sector in its journey towards recovery.
The data further delves into specific segments of retail activity, revealing intriguing insights. Food sales in the UK, for instance, demonstrated a year-on-year increase of 3.6 percent in May over the past three months. Although this growth is commendable, it lags behind last year's robust growth rate of 9.6 percent, signaling a tempered expansion in consumer spending on essential goods.
Conversely, non-food sales experienced a decline of 2.4 percent on an annual basis during the same period, reflecting subdued demand for discretionary items. In-store non-food sales saw a particularly notable decrease of 2.7 percent year-on-year in May, contrasting with the modest uptick of 1.5 percent witnessed in online non-food sales.
The shift towards online retailing continues to be a prominent trend, with the rate of non-food items purchased online reaching 36.7 percent in May 2024, surpassing the 12-month average. This surge in digital commerce underscores the evolving consumer preferences and the growing importance of e-commerce channels in the retail landscape.
Industry experts weighed in on these trends, expressing cautious optimism tempered by ongoing uncertainties. Helen Dickinson, CEO of the BRC, highlighted the resurgence in computing sales, fueled by consumers' sustained interest in upgrading technology acquired during the pandemic. Moreover, with major sporting events like the Euros and the Olympics on the horizon, retailers anticipate a boost in consumer confidence during the summer months.
Linda Ellett, head of consumer at international audit services provider KPMG, noted the positive momentum for online retailers, particularly in categories such as toys, baby equipment, and house textiles. This shift underscores the resilience and adaptability of the retail sector amidst evolving market dynamics, offering a glimmer of hope for sustained recovery in the months ahead.
MENAFN04062024000045015839ID1108294690
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.