Reeves' tax hikes kick in as food store sales slump by 5%

HIGH streets suffered post-Easter fatigue among shoppers as official data showed retail sales dropped by 2.7% last month.

- By Mauricio Alencar

The Office for National Statistics said a fall in sales in May was the largest month-on-month drop since December 2023. A Bloomberg poll of economists expected retail sales to drop by 0.5%.

Shoppers felt the pinch of Chancellor Rachel Reeves's tax hikes as sales at food stores fell by 5% — the biggest percentage drop of any retail sector.

Fewer household goods and clothes were sold, falling by 2.5% and 1.8% respectively.

Online retail sales also dropped for the second consecutive month, with clothes and footwear even less popular, with a 3.1% decrease.