Retail sales slump again in May

UK retail failed to continue the momentum shown in March and April by suffering a small like-for-like sales decrease compared to the same period in 2008.

Retail Week reports that total like-for-likes fell by 1.5 per cent, with the fashion industry faring worst. Outside of that sector there were some improvements, particularly amongst luxury goods and gifts. Sales of homewares and big-ticket items remain very weak.

Despite some tentative signs that the economy is starting to improve, retailers are still finding life on the high street especially tough,” the head of retail at analyst BDO Stoy Hayward Rupert Eastell stated.

However, it’s not all doom and gloom. Great products coupled with the warmer weather have meant that many retailers are continuing to outperform the poor expectations assumed at the start of the year.

"Although we would caution against calling the bottom of the market, these results bode well for the remainder of 2009.”