Retail sales in the UK increased more than expected in May as shops managed to lure consumers despite "topsy-turvy temperatures" and continued economic woes, a survey by the British Retail Consortium (BRC) and KPMG showed Tuesday.
Sales value rose 1.8 percent on a like-for-like basis in May from a year earlier. This followed a 2.2 percent fall in April and was faster than a 1.3 percent increase expected. On a total basis, sales were up 3.4 percent.
Furniture and flooring was the best-performing category for the first time since January 2011, BRC said. Online sales were up 11 percent year-on-year in May.
"Retailers pulled off a good result in May despite contending with topsy-turvy temperatures and continued economic difficulties," BRC Director-General Helen Dickinson said.
"The first month since February to be free of Easter timing distortions showed positive total growth in every category and overall growth well above the twelve-month average," she added.
Temporary discounts and offers worked well to tempt shoppers into stores and clear some of the stock that had been slow to sell during the preceding months, Dickinson said. However, she noted that customers still remained price-conscious though responding well to good deals, especially for big-ticket items.
"While sales didn't soar through the roof, this is still a very creditable performance from UK retailers," said David McCorquodale, Head of Retail at KPMG. "Promoting the right product at the right price made the difference in May," he said.
A survey by GfK NOP showed revealed last week that British consumer confidence rose to a six-month high in May as households remained upbeat about their personal finances as well as the overall economic situation.
The prospects for the economy also looks good after dodging recession in the first quarter. The British Chambers of Commerce on last Friday raised its growth forecasts for the economy. The industry group now expects the gross domestic product to grow 0.9 percent this year and 1.9 percent next year.
The improvement in retail sales strengthens hopes that the economy may be on track for steady recovery ahead. The latest purchasing managers' survey of the country's manufacturing sector showed that factory activity rose at its highest level in fourteen months in May.
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