After two months of flat sales, retail sales in May saw growth of 1.4%, in line with the 12-month average of 1.5%, driven principally by clothing, according to the latest BRC-KPMG Retail Sales Monitor.

Homewares fared worse, furniture at the bottom of the growth rankings table, registering its worst performance since March 2014 but retaining the top position on a three-month basis. Sales were impacted by strong comparatives and a slowdown in the housing market. The monitor states that it is "too early to conclude that there is a persistent loss of momentum in the category".

BRC chief executive Helen Dickinson OBE says: “Today's figures bring better news for the UK's retailers. Clothing made a big comeback this month after suffering declines in April. This appears to be due to consumers waiting for just the right moment before embarking on their pre-summer spending. However, with signs that the UK’s economy is slowing it’s unlikely that this is the beginning of a complete reversal of fortunes. The uncertain outlook means that customers will remain cautious with their spending, therefore we expect sales figures to remain volatile for the time being.

"While this month's pick-up in sales will come as a welcome relief, it's still a challenging time for retailers. Shop price deflation continues and intensity of competition is fierce. Controlling costs and improving efficiency and productivity will be crucial for retailers as they continue to navigate increasingly tough trading conditions."

David McCorquodale, head of retail, KPMG, adds: “Overall, retail sales showed some improvement in the month, up 1.4% in total versus May last year. Despite rain dampening the May Day mood, fashion sales finally lifted following a tough three months of trading for retailers. The appearance of some spring sunshine encouraged consumers to hit the sales and take advantage of early summer promotions."

(Source: Furniture News  Author: Paul Farley)