Data published by the Office for National Statistics (ONS) showed that retail sales decreased by 0.5% in May, offsetting an April increase of 0.4% (revised from +1.4%). However, the last drop was less than economists' forecasts (-0.7%). Compared to February 2020 (before the coronavirus pandemic), retail sales increased by 2.6%.
In annual terms, retail sales decreased by 4.7% after falling by 5.7% in April (revised from -4.9%). Consensus estimates suggested a 4.5% drop.
The ONS also reported that over the three-month period (from March to May), retail sales decreased by 1.3% compared to the previous three months.
According to the report, the drop in sales compared to April was due to grocery stores, where sales decreased by 1.6% amid rising food prices and the cost of living. Meanwhile, sales of motor fuel increased by 1.1% compared to April, while sales of non-food stores did not change. Clothing sales increased by 2.2%, while sales of household goods fell by 2.3% compared to April.
The data also showed that the proportion of retail sales online fell to 26.6% in May from 27.1% in April, but remained significantly above the level of February 2020 (19.7%).