Clothing Sales Soar As Warm Weather Arrives

Retail sales surged further last month, driven by a jump in clothing purchases as stores benefited from the return of warmer weather and shoppers hunted down bargains.

The Office for National Statistics (ONS) reported a 6% increase in sales volumes in May compared to a year earlier.

That followed an upwardly revised jump from 4.3% to 5.2% for April - with the ONS blaming late reporting of data from stores for the revision.

The official figures showed a 4.3% rise in fashion sales month-on-month in May - the biggest increase in over two years.

It (Other OTC: ITGL - news) was explained, the ONS said, by warmer weather last month compared to April.

A report by the British Retail Consortium earlier this month had found that shoppers looked to update their wardrobes ahead of summer last month, following a period of stagnation in March and April.

Others have sought to blame uncertainty over the result of the EU referendum and strained budgets for consumers keeping their cards inside their wallets and purses.

The BDO High Street Sales Tracker for May recorded a 1.9% drop compared to the same month a year ago - with chains reporting they were in the grip of a "financial winter" , according to the business advisory firm.

Consumer spending is the driving force behind the UK's economy, with GDP growth of 0.4% achieved in the first quarter of the year.

That was down from 0.6% over the previous three months.

The luxury sector has struggled more than most this year amid the wider slowdown in China and other key markets.

Mulberry, which endured horrific damage to its profits as a result of a foray upmarket, said it had since benefited from a decision to focus on affordability.

Its annual results, released on Thursday, showed pre-tax profits of £6.2m from £1.9m a year earlier - with revenue jumping 5%.

Major fashion chains have been under great pressure to discount following the weaker start to spring - with many reporting strong competition.

Chris Williamson, chief economist at Markit (NasdaqGS: MRKT - news) , said: "Sales growth is being helped by falling prices.

"The 6% leap in sales volumes assumes a 2.8% drop in average prices compared to last year, which suggests that sales are being fuelled by aggressive price discounting.

"However, this is not just about discounting: there was strong growth also seen in sales values, up 3.1% on a year ago. This can be linked to better weather but also labour market improvements and of course low interest rates."

He added: "We do also have concerns relating to the data.

"Note (Stockholm: NOTE.ST - news) that the total value of online sales was reported up an eye-opening 21.5% on a year ago, up 6.4% compared to April.

"Such growth, even if correct, looks unsustainable".