UK Retail Sales Stall in May but Is There More to the Story

If you’ve noticed fewer browses turning into baskets, you’re not alone. According to the latest figures from the British Retail Consortium and KPMG, retail sales in the UK increased by just 1% year-over-year in May. That’s the slowest monthly growth we’ve seen so far in 2025.

But here’s the thing: numbers only tell part of the story. And when you zoom in on furniture, home, and gifting, there’s more going on beneath the surface.

Consumer caution is playing a part. With essential costs rising, National Insurance increases taking effect, and household budgets being adjusted to accommodate wage changes, it’s no surprise that shoppers are trimming their expenses. The data tells the story:

• Food sales climbed by 3.6% — helped along by the extra bank holidays and a rush of football-fuelled hosting

• Non-food sales dropped by 1.1% overall

• In-store non-food fell by 0.9%

• Online non-food dipped by 1.5%, a notable swing from a 1.5% rise this time last year

• The online penetration rate held steady at 35.9%

Where does that leave furniture, home, and gifting?

Still standing, and in many cases, standing strong. In March, sales of furniture and homeware saw a 22% spike around Mother’s Day, as shoppers opted for meaningful, long-lasting gifts that added comfort and beauty to their everyday lives. Easter also brought a lift, with revenue in furniture, home furnishings, and DIY up 14% compared to 2022. Gifts, gadgets, and gaming sales doubled too, pointing to a growing appetite for creativity over convention.

Even May, slow in broader terms, brought reasons to feel encouraged. Furniture shopping rebounded slightly, with a 2.9% rise in items purchased compared to April. Warmer weather and seasonal promotions contributed to the increase, with florists and homeware stores experiencing the most significant monthly uplift in non-food sales, a 3.5% jump—the largest in three years.

And then there’s the big picture. Oxford Street, a long-time barometer of the retail mood, is seeing fewer empty units. Retailers are becoming more innovative with hybrid formats, blending digital convenience with physical presence. Summer travel demand is also up, which could give certain categories a lift in the coming weeks.

Add to that the fresh energy entering the market — nearly 600 new furniture businesses were registered in April alone, from retailers to manufacturers and repair services, and it’s clear this sector still has room to grow.

The challenge now is less about chasing record numbers and more about staying attuned to shifting behaviours, staying nimble with product and pricing, and continuing to connect in ways that matter.

So yes, the pace may have slowed. But the direction? Still forward.

All statistics and analysis in this article are based on the latest BRC-KPMG Retail Sales Monitor and Office for National Statistics (ONS) data as of June 2025