Retail sales in central London in May were 11.6% higher on a like-for-like basis than a year ago, when sales had risen only 1.7%. Stronger consumer confidence in London helped boost sales.

Retail footfall in May picked up to just above its year-earlier level, after a year-on-year decline in April. Special sales events and discounts helped attract shoppers into the capital.

Sterling’s weakness continued to attract overseas visitors, especially from western Europe, China and the Middle East. Tourists began to return to the UK after the volcanic ash disruption eased.

Food sales strengthened again after Easter distortions had depressed sales in April. Non-food similarly picked up. Clothing, footwear and outdoor leisure were boosted by sunny weather.

MARCH – MAY

Central London, Like-for-like % change on year ago Central London, Like-for-like % change on year ago 11.6% 8.8% UK 0.8% UK 1.2%

Stephen Robertson, Director General, British Retail Consortium, said:

“This is a healthier performance. London retail sales bounced back sharply after April's slowdown.

"The return of overseas visitors, after the previous month’s flight disruption, along with improving consumer confidence and sunnier weather, produced the strongest London sales growth since December.

“There were more tourists and, on average, each spent more. Consumer confidence was less negative in the capital than in previous months and than the rest of the UK. Widespread discounts and promotions encouraged spending, especially when they coincided with sunnier weather. The comparison with weak results last year also helped.

“The Chancellor must ensure Budget measures don’t undermine this revival.”

Helen Dickinson, Head of Retail, KPMG, said:

"London's retail sales bounced back in May as the weather picked up and tourist numbers were strong. May 2009 was one of the weakest months of last year, further boosting the year-on-year comparisons. The election campaign does not appear to have dented spending patterns in the capital but, as many London retailers are already reliant on promotional activity to drive footfall and sales, we will have to wait and see whether the forthcoming budget will alter the current trend of outperformance of the rest of the UK."