UK retail sales growth remains firm

Underlying growth in retail sales volume remained firm, buoyed by an increase in monthly sales volume in May, according to new figures from the Office for National Statistics (ONS).

The volume of retail sales in the three months March to May was 1.1 per cent higher than in the previous three months. This follows 1.2 per cent growth in the three months to April and compares with 0.9 per cent growth at the same time in 2006.

Three-monthly growth in sales volume was 0.4 per cent for food stores and 1.5 per cent for non-food stores. The highest three-monthly growth was for ‘other’ non-food stores at 3.5 per cent, the strongest growth in this sector since March 2004. This contrasts with household goods stores where sales fell by 1.5 per cent, the lowest for this sector since April 2005.

Compared with the same period a year ago, total sales volumes in the three months to May 2007 were up 4.4 per cent.

Analysis of monthly figures shows that the total sales volume increased by 0.4 per cent between April and May. Stronger growth was reported for all sectors except for textile, clothing and footwear retailers, where sales decreased by 2.5 per cent following a buoyant April, and food stores, which increased by 0.2 per cent, in line with growth for the previous two months. The largest increases occurred in household goods stores where sales increased by 2.9 per cent following a fall of 3.2 per cent in April and non-store retailing which rose by 2.6 per cent.

The unadjusted value of retail sales for the three months to May was 5.3 per cent higher than in the same period a year earlier. The average weekly value of sales in May was £4.9 billion, 4.6 per cent higher than in May 2006. Sales by food stores increased by 5.0 per cent over the year, compared with 3.4 per cent growth for non-food stores and 13.5 per cent for non-store retailing. Sales by clothing retailers increased by 2.9 per cent, the lowest for this sector since June 2006.