Britain’s retail sector received an unexpected boost in May as record-breaking temperatures encouraged shoppers back into stores and online platforms, temporarily reversing months of weak consumer confidence.
According to the latest BRC-KPMG Retail Sales Monitor from the British Retail Consortium and consultancy KPMG, retail sales increased by 3.7% year on year, marking a sharp improvement from April’s 3% decline. The turnaround came as temperatures reached 35.1C, the highest ever recorded for May in the UK.
The warm weather quickly reshaped consumer behaviour. Demand surged for seasonal items such as sandals, sunglasses and summer clothing, while fans, lighter bedding and outdoor toys also saw strong sales. Food purchases rose 3.9%, boosted by bank holiday gatherings and outdoor barbecues, while non-food spending climbed 3.5%.
Helen Dickinson, chief executive of the British Retail Consortium British Retail Consortium, said the heatwave had “driven a surge in outdoor and summer goods”, with shoppers taking advantage of early summer conditions to stock up on essentials and leisure products. She added that many consumers turned to online shopping to avoid the extreme heat, further supporting digital retail channels.
Alcohol sales also increased as households and pub gardens filled during the sunny spell. Retail analysts expect demand to remain elevated into the summer, with upcoming sporting events such as the FIFA World Cup expected to provide additional support for grocery and hospitality spending.
However, not all sectors benefited from the improved weather. Separate data from Barclays showed that travel-related spending fell 5.8% in May, marking a third consecutive monthly decline. Spending on air travel dropped 12.9%, reflecting ongoing uncertainty linked to geopolitical tensions in the Middle East and growing concerns over cancellations and delays.
The bank reported that nearly half of UK consumers now intend to holiday domestically this year, signalling a shift towards staycations amid international uncertainty. At the same time, spending on digital subscriptions and entertainment services rose sharply by 12.8%, the strongest increase since 2021, as households opted for at-home leisure activities and sports streaming services.
Karen Johnson, head of retail at Barclays, said warmer weather and the early May bank holiday had given consumers more reasons to spend, particularly on affordable leisure and family activities.
Despite the positive headline figures, underlying conditions remain weak when adjusted for inflation. Barclays estimated total consumer spending growth at just 0.8% in May, well below the 2.8% inflation rate, indicating that real-terms spending continues to decline.
Economists warn that the outlook for the coming months is uncertain. Rising energy costs linked to global tensions are expected to push inflation higher, with forecasts suggesting it could exceed 4%. This could place additional pressure on households and limit discretionary spending.
Sarah Bradbury of IGD cautioned that higher energy bills and food inflation could undermine consumer confidence later in the year. Official data from the Office for National Statistics also shows retail volumes fell in April, reinforcing concerns that recovery remains uneven.
For now, the heatwave has provided a short-term lift for the high street, but analysts say sustained recovery will depend on whether consumer confidence can withstand rising costs and global economic uncertainty.
