UK retail sales increased by 3.7% year-on-year on a like-for-like basis in May 2026, exceeding market expectations for a 0.6% gain and marking the strongest growth since April 2025. The latest figure rebounded from a 3.4% decline in April, driven largely by seasonal demand during a May heatwave and the early bank holiday period. Food sales advanced 3.9%, lifted by bank holiday barbecue demand, while non-food categories, such as clothing, footwear, outdoor goods, health and beauty, and home products, rose 3.5% as warmer weather encouraged spending in outdoor and summer goods. However, travel spending fell 5.8% year-on-year for a third consecutive month, and airline expenditure dropped 12.9%. Barclays said two-thirds of respondents were adjusting their finances because of broader economic uncertainty, including concerns linked to the Iran conflict and rising living costs.