While retail sales growth slowed in May due to poor weather, the overall picture was positive with the sector 4.6% ahead of last year.

The upward drive in the retail sector has pushed the pound to a 7-month high against the dollar.

Slow growth

The Office for National Statistics’ (ONS) figures show a small monthly growth in retail sales for May of just 0.2%.

This was down on the April figure of 0.6% which was boosted by great spring weather.

The poor weather in May hit the textile, clothing and footwear stores hardest. These experienced a drop of 1.6% in sales - their worst result since September.

However, the UK’s supermarkets finally had some good news as food sales rose 0.6%.

Markit chief economist, Chris Williamson says that with the recent results and predicted growth, there is still plenty of optimism in the retail sector.

He believes that these positive results will bring an interest rate rise forward to the end of 2015, rather than early 2016.

Weekly spend over £7bn

The average weekly spend was once again back over the £7bn mark (£7.1bn) in May, after dropping below in April.

However, in May average store prices dropped 2.7% compared to last year. It’s believed that falling petrol costs played a part in this.

The drop in fuel prices did though, help some stores, with restructuring and advisory firm FRP Advisory claiming it was a factor in the reduction of those entering administration last year.

Overall, the total amount spent in retail was up 1.8% from last year and rose 0.2% in May on April’s figures.

For online sales, there was a drop of 2.1% on the month but a rise of 7.4% since last year. Online now accounts for 12% of all retail sales. 

Read about Strutt & Parker's retail services.