The May 2024 BRC-KPMG Retail Sales Monitor, a key indicator of the UK retail sector's health, paints a mixed picture. While total retail sales grew by 0.7% year-on-year, non-food sales declined prompting Bira to voice concerns about the ongoing struggles faced by smaller businesses.
The report, which can be downloaded here, has highlighted:
"The priorities for the incoming government must be economic growth and reviving consumer confidence. Our high streets are the lifeblood of local communities across the nation, fostering vibrancy and pride. However, this treasured institution is at a precarious point, battered by fragile economic conditions and wavering consumer sentiment.
"Small and independent retailers are particularly vulnerable, operating on slimmer margins. A failure to stimulate consumer spending and nurture an environment conducive to entrepreneurship could devastate many beloved local businesses. Robust policies are urgently needed to revitalise our high streets - the cornerstones of our towns and cities. By prioritising their revival, we safeguard livelihoods and preserve the very soul of our communities for generations to come," he added.
The report, which can be downloaded here, has highlighted:
- UK Total retail sales increased by 0.7% year on year in May, against a growth of 3.9% in May 2023. This was above the 3-month average growth of 0.3% and below the 12-month average growth of 2.0%.
- Food sales increased 3.6% year on year over the three months to May, against a growth of 9.6% in May 2023. This is below the 12-month average growth of 6.4%. For the month of May, Food was in growth year-on-year.
- Non-Food sales decreased 2.4% year on year over the three-months to May, against a growth of 0.7% in May 2023. This is steeper than the 12-month average decline of 1.7%. For the month of May, Non-Food was in decline year-on-year.
- In-store Non-Food sales over the three months to May decreased 2.7% year on year, against a growth of 2.9% in May 2023. This is below the 12-month average decline of 1.1%.
- Online Non-Food sales increased by 1.5% year on year in May, against an average decline of 3.0% in May 2023. This was above the 3-month and 12-month average declines of 1.8% and 2.6% respectively.
- The online penetration rate (the proportion of Non-Food items bought online) increased to 36.7% in May from 35.9% in May 2023. This was slightly higher than the 12-month average of 36.1%
"The priorities for the incoming government must be economic growth and reviving consumer confidence. Our high streets are the lifeblood of local communities across the nation, fostering vibrancy and pride. However, this treasured institution is at a precarious point, battered by fragile economic conditions and wavering consumer sentiment.
"Small and independent retailers are particularly vulnerable, operating on slimmer margins. A failure to stimulate consumer spending and nurture an environment conducive to entrepreneurship could devastate many beloved local businesses. Robust policies are urgently needed to revitalise our high streets - the cornerstones of our towns and cities. By prioritising their revival, we safeguard livelihoods and preserve the very soul of our communities for generations to come," he added.
