In May 2024, total like-for-like retail sales in discretionary categories decreased by 1.2%, following a strong positive base of 2.3% from the previous year. This decline was notably due to a 3.1% drop in non-store retail sales—the first decline since March 2024, excluding the Black Friday period. Analyzing specific sectors, online fashion sales plummeted 4.5%, while homewares sales also decreased significantly. Experts warn that rising operational costs combined with inflation are hampering retailers' ability to offer discounts, severely affecting sales across all categories as the sector braced for a challenging summer.
"This is a hugely disappointing set of results for the retail sector as we head into the summer months. Retailers have been predicting the inflationary cost challenges for some time and, unfortunately, we're now seeing them have a real impact."
"With mounting cost pressures from inflation, higher wages and increased operating costs, many are simply unable to cut prices on their products. As a result, volumes are down across every category and channel."
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