Britain's retail sales up in May, but outlook uncertain: BRC


LONDON, June 9 (Xinhua) -- Britain's retail sales grew in May as warm weather and the late May bank holiday boosted consumer spending. However, retailers cautioned that rising costs and pressure on household finances continue to cloud the outlook.

Total retail sales increased by 3.7 percent year-on-year in May, compared with growth of 1 percent in the same month last year and above the 12-month average growth rate of 2 percent, according to figures released on Tuesday by the British Retail Consortium (BRC).

Food sales rose 3.9 percent year-on-year, up from growth of 3.6 percent in May last year, while non-food sales increased by 3.5 percent, compared with 1.1 percent a year earlier.

May's warm weather boosted demand for outdoor and seasonal goods. Clothing and footwear sales returned to growth as shoppers bought summer essentials, while sales of fans, lighter bedding and outdoor toys also increased. Food sales benefited from bank holiday barbecues, Helen Dickinson, chief executive of the BRC, said.

Sarah Bradbury, chief executive officer of the Institute of Grocery Distribution, said forecasts of further warm weather and the upcoming World Cup could support food and drink sales in the coming months by improving consumer sentiment.

However, Dickinson said the recent growth should not be taken for granted, citing continued pressure on household finances, fragile consumer confidence and rising costs facing retailers.

Bradbury warned that increases in Britain's energy price cap from July, the possibility of further rises later this year and the effects of the Middle East conflict could push up food inflation and weigh on consumer confidence.

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