UK retail sales fell 2.1% like-for-like in May compared to the same month last year, according to the latest BRC-KPMG Retail Sales Monitor.
On a total basis, sales were down 0.3% against a 3% increase in May 2010, as the reality of consumer uncertainty over jobs and incomes resurfaced after April's Bank Holiday boost.

Food sales slowed sharply after April's strong growth and non-food sales were much weaker, with consumer caution hitting homewares, clothing and footwear. Big-ticket items suffered most and were often promotion-led, said the report.

The sunny start to the month, together with Bank Holiday promotions, boosted DIY and gardening, but this faded as the weather worsened. Indoor DIY and décor were mixed, said the report, with consumer uncertainty hitting home improvement, especially larger projects.

In homewares, home textiles and accessories sales remained weak, with accessories down on a year ago for the fourth consecutive month, and textiles remaining flat. Cold, wet weather turned mindsets indoors again, and sales were often promotion-led, with linens and bedding benefiting.

Sales of furniture and floorcoverings dropped back sharply to well below their year-earlier level. Garden furniture slowed after April's sunshine and indoor furniture continued to suffer from consumer caution. Big-ticket items, especially fitted kitchens and bathrooms, also suffered as people put off major purchases, and forward orders gave "serious cause for concern", said the report.

BRC director general Stephen Robertson said: "After two previous months distorted by the later Easter and extra Bank Holiday, this is a more realistic reflection of how tough conditions on the high street really are. The first half of May was better than the second, when the weather turned unseasonably wet and cold in many parts of the country, but customers' fundamental reluctance to spend is now clear to see. Households' disposable incomes continue to be squeezed by uncomfortably high inflation and low wage growth, while uncertainty over the Government cuts is hitting consumers' sentiment about future finances.

"The VAT rise since last year is flattering the sales figure for most non-food goods, while renewed weakness in the housing market made life particularly difficult for retailers selling furniture and household goods. This new evidence of weak spending shows how important it is to support this soft patch in the recovery by keeping interest rates low."

Non-food non-store sales growth also slowed in May, but in comparison with a very strong May 2010. Sales were 10.4% higher than a year ago, compared with 13.7% in April, but more than 20% in May last year.

The latest High Street Sales Tracker from BDO painted a similar picture to the BRC figures, with the results showing homewares sales down 7% year-on-year.

The Tracker, which monitors the weekly sales changes of more than 70 retailers with around 10,000 individual stores, found total sales in May decreased 0.1% on a like-for-like basis.