More consumers visited shops last month as mild spring weather offered relief to retailers strained by reduced spending after the US-Israel conflict with Iran. Data from the British Retail Consortium and a survey by BDO indicated higher footfall in May, offsetting a steep fall in April. The upturn aligned with improved consumer confidence readings, as people adjusted to higher fuel costs tied to the Middle East conflict that started in late February. BDO reported a 3.4 percent increase in total high street sales compared with May 2025. The BRC noted a 2.6 percent drop in overall footfall from the prior year, yet this marked a clear recovery from the 10.7 percent decline recorded in April. High streets performed best with a 1.7 percent fall, while shopping centres saw a 2.4 percent drop. BRC chief executive Helen Dickinson observed that total UK footfall stayed below last year’s level but improved substantially from April’s sharp fall. Record heat in the final week of May kept many people indoors, preventing a positive outcome. High streets benefited as residents visited nearby stores during milder periods. A YouGov and Centre for Economics and Business Research poll showed consumer confidence rising by 2.6 points to 104.9 in May, the largest gain in five years. Scores above 100 reflect positive views. Improved household finances and house price expectations drove the optimism. The results suggest the UK economy has avoided the worst outcomes projected at the start of the conflict. The OECD now forecasts 0.9 percent growth for the year, slightly above its March estimate. Unemployment has risen to 5 percent and energy costs are set to climb later. Retailers overall face ongoing pressure from tax increases and global tensions, though some hope the current World Cup will lift sales. BDO retail head Sophie Michael warned that conflict-related uncertainty and higher energy prices could outweigh short-term gains from summer events, leaving the longer-term outlook challenging.
