Report Summary

Period covered: 04 May – 31 May 2025

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Clothing & Footwear Sales

Clothing sales fell by xx% YoY, while Footwear sales fell xx% YoY in May, according to the Retail Economics Retail Sales Index (value, non-seasonally adjusted). 

Clothing inflation fell by xx% YoY (ONS) as retailers launched early summer sales.

Key sales drivers

Clothing & Footwear sales’ performance in May reflects several upside (+) and downside (-) factors including:

Sunny weather(+): The UK’s warm spring continued, with generally sunny, dry weather continuing for the first three weeks of the month. While rainfall increased in the final week, much of the country remained dry, giving the month an early-summer feel.

Travel focus (-): Those with spare cash channelled it into late-May holidays, while cutting back on high street trips, leading to a fall in footfall and stiff competition for spend for clothing and footwear retailers.

Increased bills (-): Consumers continued to acclimatise to higher bills, however, with water and energy bills having increased in April.

Increased retailer costs (-): Retailers also faced higher costs as they grappled with the first months of higher minimum wage and employers’ National Insurance costs.   

Signs of optimism

After a strong early spring, driven by sunny weather in April, sales momentum faded in May, with many shoppers having refreshed their wardrobes early in the season.

Footfall fell xx% across all destinations (MRI Software) driven by a xx% fall in high street footfall. While the school half term break, and two bank holidays, helped to prevent steeper declines, the fall highlighted the continued pressure on high streets when multiple external factors converge.

While consumers continued to browse clothing and footwear in May, retailers reported lower conversion rates; purchases that were made tended to be driven by practical need, with value-led retailers and supermarket lines doing well.

Continued caution

Consumer confidence in May increased three points to -xx. Another two-point rise in June to -xx offers hope of a mood uplift that retailers will be hoping translates into sales.

Other signs of hope include strong interest in summer travel and the holiday season, offering potential lifts in sales of swimwear, holiday apparel and footwear.

Overall, however, consumers remain careful and calculated, meaning clothing and footwear retailers will need to manage inventory carefully, refine pricing and promotions, and use tools such as loyalty schemes and flexible payment options to tempt spend from a cautious customer base.

Economic outlook

Monthly GDP was estimated to have fallen xx% in April, following growth of xx% in March.

Real GDP grew by xx% in the three months to April, marking the strongest quarterly growth in the G7 despite the monthly decline.

The IMF raised its 2025 UK growth forecast to xx%, with 2026 growth expected at xx%. 

The Bank of England held interest rates in June at xx%, following a xx% cut on May 8 and a hold in April. The probability of an August cut stands at 51%.

With inflation higher than target at xx%, and borrowing costs remaining high, the broader environment continues to shape how and where consumers spend.

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Clothing and Footwear year-on-year growth