Retail sales plummeted in May as Brits’ spending spree screeched to a halt, says Parcehero.

The amount of goods Brits bought fell by 2.7% in May, with food store sales tumbling by 5% and online spending falling 1%. After four months of rising sales, consumers faced the reality of Awful April’s financial impact, says the home delivery expert Parcelhero.

After four months of continuous rises, the Office for National Statistics (ONS) retail sales estimates for May show Brits’ spending spree coming to an abrupt halt, says the home delivery expert Parcelhero. Retail sales volumes (the amount we all bought) fell by 2.7% last month against April. It was the biggest fall since December 2023.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘It was too good to last… Over four consecutive months, Brits defied expectations and continued to buy more. April’s sales results have even been revised upwards by the ONS from 1.2% to 1.3%. But reality finally hit in May.

‘Not only were sales volumes down 2.7% against April but they were also down 1.3% YOY against May 2024. Every category of retail saw a fall. Worst hit were supermarkets and other food stores, with their sales volumes down a whopping 5%. Supermarkets told the ONS that inflation was a factor, together with customers cutting back on spending. Reduced sales of alcohol and tobacco show the party was well and truly over for shoppers. This was food stores’ largest monthly fall since May 2021.

‘Not only did the amount we bought fall but also the amount we spent. Total spend – the sum of in-store and online sales – fell by 2.4% against April.

‘Nor did online sellers fare much better. Non-store retailers (the category mainly comprising e-commerce sellers) sales volumes fell by 0.7% and the amount we spent online also fell by 1% against April and 2.5% YOY.

‘After last month’s surprise sales rise, we said the heady mix of competitive retail offers and spring sunshine had combined to keep us all spending. Alas, even the continuing sunshine failed to keep consumers’ spirits high for a fifth month in a row. The reality of “Awful April” saw increases in household energy costs, water bills and council tax rates. Brits were also worried about their jobs following April’s employers’ National Insurance (NI) contributions rise, the 6.7% increase to the National Living Wage and President Trump’s new “Liberation Day” tariffs. These events combined to create a perfect storm, just as many retailers had feared.

‘The multi-million dollar question is: will this be a one-off blip while shoppers take stock or are Brits now grimly preparing for the possibility of an increasingly uncertain economic future? June’s crunch retail results will tell us a lot more about consumers’ longer-term thinking.

‘Ultimately, it’s those stores with a combined High Street and online offering that are most protected against inflation pressures and unexpected events. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf