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A Summer Lift For UK Retail, But Youth Unemployment Threatens Future Demand

• By  Textile Excellence
• June 15, 2026

The UK retail market offered encouraging signs in May, providing a cautiously positive outlook for global textile and apparel exporters tracking UK consumer demand.

Total retail sales rose 3.7% year-on-year during the four weeks to 30 May, significantly stronger than the 1.0% growth recorded a year earlier and above the 12-month average of 2.0%. Non-food sales increased by 3.5%, reversing the 1.1% decline seen in May 2025 and indicating that consumers are once again willing to spend on discretionary purchases.

For the fashion industry, the biggest bright spot was the return of growth in clothing and footwear sales. A late spring heatwave prompted shoppers to update their wardrobes with summer essentials, giving the category one of its strongest performances since the January sales period. Summer holidays and the upcoming World Cup could provide additional support for spending in the months ahead.

However, this recovery is unfolding with caution.

Online shopping continued to gain momentum. Online non-food sales surged 10.6%, compared with a 1.5% decline a year earlier, while the share of non-food purchases made online rose to 38.0% from 36.0%. At the same time, in-store non-food sales edged down 0.4%, highlighting consumers' growing preference for digital channels.

Footfall data painted a similarly mixed picture. Total UK footfall declined by 2.6% year-on-year in May, although this was a marked improvement from April's 10.7% drop. High Streets proved the most resilient, with footfall down 1.5%, while Shopping Centres and Retail Parks remained under pressure. Early sunshine encouraged people out, but record temperatures later in the month kept many shoppers away from stores.

Longer term unemployment risk

At the same time, a longer-term risk is beginning to emerge. More than 80 major UK retail leaders have warned that rising employment costs could worsen youth unemployment. An interim report led by Alan Milburn estimates that as many as 1.25 million people under the age of 25 could be unemployed within the next five years.

For exporters, this is an important signal. UK demand is improving and apparel spending has returned to growth, but the recovery remains fragile. If youth unemployment rises and household finances remain strained, weaker consumer confidence could eventually slow spending, dampen economic growth and curb future demand for fashion and other discretionary products.

For exporters, this is an important signal. UK demand is improving and apparel spending has returned to growth, but the recovery remains fragile. If youth unemployment rises and household finances remain strained, weaker consumer confidence could eventually slow spending, dampen economic growth and curb future demand for fashion and other discretionary products.