The authoritative independent voice of the UK food industry

The authoritative independent voice of the UK food industry

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Consumers spend with caution as they navigate “financial uncertainty”

10 Jun, 2025

The BRC has released the latest retail figures for the four weeks to 31st May 2025, finding that food sales increased by 3.6% year-on-year.

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The British Retail Consortium (BRC) has released the latest retail figures for the four weeks to 31st May 2025, finding that food sales increased by 3.6% year-on-year.

The increase in food sales was against growth of 2.8% in May 2024. UK total retail sales increased by 1% year-on-year, against growth of 0.7% in May 2024.

Sarah Bradbury, CEO of the Institute of Grocery Distribution (IGD), said: “After the sunniest spring on record and a string of bank holidays, our Shopper Confidence Index rose by five points in May, helped by the prospect of lower energy bills and renewed momentum in UK trade agreements with the US and EU.

“This uplift marks a welcome shift from ‘Awful April’, but beneath the surface, confidence remains fragile. Our research shows that shoppers are still navigating financial uncertainty and continue to rely on money-saving tactics like planning ahead and buying on promotion.

“While the mood has brightened, we’ve yet to see this translate into meaningful changes in behaviour. With the external environment still volatile, shoppers remain cautiously optimistic, but not necessarily ready to spend freely.”

“Food sales remained solid as the month saw the conclusion of football tournaments and two bank holidays.”

Helen Dickinson, chief executive of the BRC, said: “Consumers put the brakes on spending, with the slowest growth in 2025 so far. This was due largely to declines in non-food sales… Food sales remained solid as the month saw the conclusion of football tournaments and two bank holidays, prompting spending on BBQs and picnics.

“Retailers are grappling with the £5 billion in extra costs from higher National Insurance contributions and wages, which kicked in during April. They also face an additional £2 billion later this year from new packaging taxes and remain concerned about the consequences of the Employment Rights Bill. Ensuring the new Bill supports workers’ rights without undermining retailers’ ability to continue to provide jobs and investment in people will determine whether Government achieves economic growth across the country or not.”

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