Consumer spending in furniture stores rose by 3.9% year-on-year in May 2025, according to Barclays' latest Consumer Spending Index. Despite this increase in value, transaction volumes dipped slightly by 0.8%, indicating that consumers are spending more per purchase.
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The furniture sector outperformed other retail categories, with home improvement and DIY stores seeing a 0.9% decline in spending and a 4.7% drop in transactions. Department stores experienced a sharper 13.4% fall in spending and a 5.5% reduction in transactions. Discount stores and garden centres reported mixed results, with discount stores seeing spending down 2.1%, while garden centres grew by 7.2% in value and 5.6% in volume.
Overall, total consumer card spending, combining credit and debit cards, grew by just 1.0% year-on-year, a notable drop from April's 4.5% and lagging behind the current 3.5% CPIH inflation rate. The twin Bank Holidays and early May sunshine boosted discretionary purchases, but this was later tempered by wet weather and continued financial caution.
Economic uncertainty also weighed on sentiment. A majority of consumers (72%) expressed concern about global import tariffs, while 42% believe the recently signed EU trade deal will positively impact the UK economy. Expectations of improved product availability (45%) and quality (41%) were among the anticipated benefits.
Karen Johnson, Head of Retail at Barclays, observed: 'Consumers are clearly becoming more value-conscious as financial pressures persist, but they're still finding joy in the everyday.' She added that while May's public holidays encouraged some spending, unsettled weather and economic uncertainty continued to influence consumer behaviour.
The figures suggest a cautious but resilient market, with furniture retailers benefiting from selective consumer spending amidst a shifting economic landscape.
Source: www.bigfurnituregroup.com