UK retail sales unexpectedly fell in May as restaurants reopened and people shifted some of their spending from food stores, although they remained above pre-pandemic levels.
Figures released earlier by the Office for National Statistics showed retail sales declined by 1.4% on the month, versus expectations for a 1.5% increase. Sales at food stores saw the biggest drop, with volumes down 5.7% as the hospitality industry reopened after Covid restrictions eased and people returned to eating and drinking in pubs and restaurants.
Meanwhile, clothing and department stores reported monthly declines of 2.5% and 6.7%, respectively.
Despite the overall monthly fall, the ONS said that over April and May combined, retail sales were still 7.7% higher than in March 2021, and 9.1% above where they were in February 2020, before the impact of the coronavirus pandemic.
ONS Director of Economic Statistics Darren Morgan said: “Following a sharp increase last month coinciding with post-lockdown reopening, retail sales dipped slightly in May. However, they remain well above both their pre-pandemic levels and those seen in March before shops reopened.
“Food stores sales suffered as feedback suggested the reopening of hospitality meant consumers took advantage of eating out instead. Household goods stores and garden centres fared well as people spent money on improving their gardens in anticipation of the summer and the lifting of restrictions on outdoor gatherings.
“As customers returned to physical stores, online sales fell in May for the third consecutive month, but remain nearly 60% higher than the level seen in February 2020.”
