Inflation Masks Decline in Volumes, Warns BRC CEO
- UK total retail sales increased by 3.9% in the four weeks between 30 April and 27 May, below the three-month average growth of 4.7%
- May retail sales improved upon a 1.1% decline from the same period last year
- Inflation levels are at historically record highs, masking a larger drop in volumes once adjusted for inflation
- Like-for-like retail sales rose by 3.7%, against a prior decline of 1.5% in the same period last year
- Food sales increased 9.6%, above the 12-month average growth of 6.9%
- Non-food sales increased 0.7% on a total basis, above the 12-month average growth of 0.5%
- In-store non-food sales increased 2.9% since May 2022, below the 12-month average growth of 3.7%
- Online non-food sales decreased by 3%, steeper than the three-month average decline of 2.8% and shallower than the 12-month decline of 4%
- Proportion of non-food items bought online dropped to 36.3% from 37.1% in the same period last year
- Bank holidays failed to boost shopper spending, with sales growth at its lowest in six months
- Consumer confidence and tight household incomes may hinder future sales growth
- Helen Dickinson urges against more government regulation and tax on businesses
The Office for National Statistics (ONS) reported that UK total retail sales increased by 3.9% between 30 April and 27 May, below the three-month average growth of 4.7%. Despite three bank holidays in one month, sales growth slowed to its lowest level in six months. Food sales saw a boost during the Coronation weekend, but this was not sustained for the rest of the month. Inflation levels are at historically record highs, masking a larger drop in volumes once adjusted for inflation. Like-for-like retail sales rose by 3.7%, against a prior decline of 1.5% in the same period last year. Food sales increased 9.6%, above the 12-month average growth of 6.9%. Non-food sales increased 0.7% on a total basis, above the 12-month average growth of 0.5%. In-store non-food sales increased 2.9% since May 2022, below the total 12-month average growth of 3.7%. Online non-food sales decreased by 3%, steeper than the three-month average decline of 2.8% and shallower than the 12-month decline of 4%. The proportion of non-food items bought online dropped to 36.3% in May from 37.1% in the same period last year. Helen Dickinson, chief executive of the British Retail Consortium (BRC), warned that the bank holidays failed to boost shopper spending and consumer confidence and tight household incomes may hinder future sales growth. She urged against more government regulation and tax on businesses.
Factuality Level: 8
Factuality Justification: The article provides accurate information from a reliable source (ONS) and presents it in an objective manner without any significant issues related to digressions, misleading information, sensationalism, redundancy, or personal perspective. It does not include invalid arguments or logical errors.
Noise Level: 2
Noise Justification: The article provides relevant information about UK retail sales figures and inflation, with a focus on specific categories such as food and non-food sales. It also includes expert commentary from the chief executive of the BRC. The analysis is concise and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Retail sales figures impact UK economy and businesses
Financial Rating Justification: The article discusses the changes in retail sales, which have an impact on the overall economy and can affect companies’ financial performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the last 48 hours.
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