UK retailers hope the next UK government will make positive changes to business rates and give the UK’s retail sector an economic boost. Credit: Shutterstock.

The UK’s non-food retail sales, which includes clothing decreased 2.4% year on year over the three-months to May, which was against a growth of 0.7% in May 2023.

The British Retail Consortium explained this was steeper than the 12-month average decline of 1.7% and for the month of May non-food was in decline year on year.

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Similarly, in-store non-food sales over the three months to May were down 2.7% year on year. This was against a growth of 2.9% in May 2023 and was below the 12-month average decline of 1.1%.

However, online non-food sales saw a 1.5% increase year on year in May, against an average decline of 3.0% in May 2023.

British Retail Consortium chief executive Helen Dickinson explained that despite non-food sales falling over the course of the month, the bank holiday weekend did see strong clothing sales. But, she also noted there was minimal improvement to weather across most of May, which meant only a modest rebound in retail sales overall.

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KPMG UK head of consumer, retail and leisure Linda Ellett added that women’s and children’s clothing also saw small increases in sales. After nearly three years, she believes things may have turned a corner for online retailers, with year-on-year sales growth across most categories, including toys and baby equipment and house textiles.

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Dickinson pointed out that retailers remain optimistic that major events such as the Euros and the Olympics will bolster consumer confidence this summer.

She also highlighted that with the UK election only four weeks away, retailers stand ready to collaborate with the next government to unlock economic potential, benefitting customers, colleagues and communities alike.

“Cross government co-ordination and outcome driven policy making must no longer be an afterthought in government decision making. Retail really is the “everywhere economy”, and with the right policy environment can use its scale and reach to support public policy goals,” she said.

Ellett adds: “With the General Election date fixed, retailers will be keen to hear positive measures to help boost the economy and, in particular, signs that long-awaited changes to the business rates regime are finally on their way.”

In March, UK retail sales saw both sales values (amount spent) and volumes experience no change on the month (0.0%), suggesting that increased prices were affecting consumer spending habits.