span>span>Friday 24th June /span>span>2022/span>span> - 07:55 (BST)/span>/span>
Figures released by The Office for National Statistics (ONS) have indicated UK retail sales fell less than expected over May, despite the nationwide squeeze on household finances. The quantity of goods bought in Great Britain fell 0.5% between April and May – significantly lower than last months expanse of 0.4% but slightly better than the 0.7% fall expected.
The Jubilee Bank Holiday gave UK high streets a much-needed lift as shopper footfall surged, whilst the school half-term also helped stoke high street demand.
However it’s now clear the post-pandemic spending bubble has burst - with retailers facing tougher trading conditions, falling consumer confidence, and soaring inflation impacting consumers spending power.
May’s fall was “driven by a decline in food sales”, according to Heather Bovill, ONS deputy director for surveys and economic indicators. She added that feedback from supermarkets suggested that “customers were spending less on their food shop, because of the rising cost of living”.
Higher value items, such as furniture and electronics, were also badly hit as shoppers reconsidered major purchases during this difficult time. Whilst online sales appear to have stabilised as a ‘new normal’ around nine percentage points above their pre-pandemic levels, but well down on the lockdown peaks.
The latest readings follow warnings from the Bank of England that inflation might reach 11% this year - as the price of fuel, energy and food put pressure on household budgets. Figures released earlier this week showed that CPI rose at an annual rate of 9.1% during May, whilst RPI rose at an annual rate of 11.7% - the fastest pace since 1981.
