High Street struggles as shoppers slam the brakes on spending: Retail sales see weakest growth this year

By CITY & FINANCE REPORTER FOR THE DAILY MAIL

Updated: 22:07 BST, 9 June 2025

Shoppers have slammed the brakes on spending amid concerns about their finances and the health of the economy.

In a blow to struggling High Street firms, retail sales last month were just 1 per cent higher than in May last year, according to trade association the British Retail Consortium (BRC) and auditor KPMG. 

That was the weakest performance so far this year and came as consumers stopped splashing out on ‘non-essential’ items. Food sales were sharply higher, rising 3.6 per cent year-on-year, as the warm weather and bank holidays encouraged people to have barbecues and picnics. 

But non-food sales fell 1.1 per cent. BRC chief Helen Dickinson said: ‘Consumers put the brakes on spending, with the slowest growth in 2025 so far. 

Retailers are grappling with the £5billion in extra costs from higher National Insurance Contributions [introduced in Labour’s Autumn Budget last year] and wages, which kicked in during April.

‘They also face an additional £2billion later this year from new packaging taxes and remain concerned about the consequences of the Employment Rights Bill.’

Sales slump: In a blow to struggling High Street firms, retail sales last month were just 1% higher than in May last year, according to the British Retail Consortium and KPMG

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High Street struggles as shoppers slam the brakes on spending: Retail sales see weakest growth this year

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