Retail sales have decreased as the cost of living crisis continues to squeeze UK households. Latest data from the British Retail Consortium (BRC) reveals that total retail sales fell by 1.1% in May, when compared to the figures 12 months ago.
Sales of clothing increased as Brits prepared for their summer holidays and special occasions like the Platinum Jubilee, according to analysis from the experts at money.co.uk, while sales of larger items like furniture and electronics dropped off.
James Andrews, Senior Personal Finance Editor at money.co.uk, said: “Latest data shows that Brits are spending less now than they were a year ago, which is no surprise when you consider that millions of UK households are stretched like never before amid the cost of living crisis.
“The spending surge that we saw post pandemic, as people hit the high street once again after many had built up savings during various lockdowns, is well and truly over, with consumers less inclined to part with their hard-earned cash.
“This is a direct result of not just soaring inflation, with prices for everything from food and drink to the cost of energy surging, but also fears for the future with consumer confidence falling to its lowest level since records began 50 years ago.
“This has understandably resulted in shoppers being less inclined to make impulse purchases or splash out on big-ticket items. We’re seeing people becoming more careful with their cash, keeping an eye out for bargains, holding on to existing items longer before replacing them and spending more time deciding what they want to buy.
“In the wake of today’s BRC data, retailers will be tightening their belts and looking towards the summer in the hope that spending increases and confidence improves.
“If you’re worried about managing your money over the next few months, learning to organise your household budget is essential. For a quick and easy guide on all things budgeting, visit: https://www.money.co.uk/guides/how-to-write-a-budget.”
