A sunnier month is not a real high street revival

Rajeev Shaunak, head of consumer at MHA, comments on May’s ONS retail sales figures:

“Retail sales bounced back unexpectedly well in May as the Spring heatwave, early bank holiday and a pre-World Cup buzz gave the high street a badly needed boost after April’s disappointing slump. Shoppers were tempted back by the sunshine, with sandals, sunglasses and barbecue food enjoying their brief but glorious moment in the British sun, alongside stronger demand for food and drink, health and beauty products and days out. Promotions also drove increased retail volume.

“But no one should mistake a sunnier month for a real high street revival. Consumer confidence remains stuck deep in negative territory as revealed overnight. Families are still worried about their finances and the wider economy, and many are putting off big purchases, cutting back on treats and trying to save what they can.

“If consumers lose confidence, the impact is felt quickly on the High Street. Better weather may have brought people out, but retailers are still battling fragile demand, squeezed household budgets, higher borrowing costs, increased energy prices and inflation that is likely to rise again later in the year. The potential deal between the US and Iran may offer a glimmer of hope, but any relief for families will take time to show up in bills, prices and the cost of living.”