UK Retail Sales Fell in May

UK MAY RETAIL SALES -1.4% M/M; +24.6% Y/Y

UK MAY RETAIL SALES EX-FUEL -2.1% M/M; +21.7% Y/Y

UK APR TOTAL SALES UNREVISED AT +9.2% M/M

UK MAY RETAIL SALES DEFLATOR +2.2% Y/Y; EX-FUEL +1.2% Y/Y

• UK retail sales declined by 1.4% in May, in contrast to markets looking for an uptick (BBG: 1.5%). This follows a sharp increase in Apr which was impacted by the reopening of shops.
• Nevertheless, sales are 9.1% above the pre-pandemic level.
• Annual sales registered at 24.6%, still reflecting the low sales recorded at the beginning of the pandemic.
• Food store sales saw the largest drop on record, down 5.7% in May. The ONS noted that feedback suggests the reopening led consumers to return to restaurants and bars.
• Non-food stores and particularly household goods stores posted another strong reading in May, rising by 2.3% and 9.0%, respectively, as people continued to improve their homes and gardens.
• Fuel sales rose by 6.2% in May, following two months of double-digit growth rates. However, the level of fuel sales remains below the pre-pandemic level, the ONS noted.
• The proportion of online sales eased further in May to 28.5% with all retail sectors reporting a fall.