Tarlok Teji, Head of Retail at Deloitte, said: "May 2007 was a very poor month and therefore it is perhaps not surprising to see an increase in sales for May 2008.  Last month saw heavy discounting, especially around the two Bank Holiday weekends and this along with some fine weather brought shoppers back to the High Street.  However, these numbers are really just a blip and the longer term picture is one of falling consumer spending and declining sales.  Retailers will most certainly have made the most of May but will be preparing for tougher times to come."

Richard Hyman, strategic adviser to Deloitte's Consumer Business practice, said: "The second half of 2008 is going to be very difficult for retailers and it may get even worse in 2009.  Consumers are starting to feel the pinch from rising energy and food bills.  As consumers spend increasing amounts of their money on what they need, there will be less disposable income to spend on what they want."

Ends

Notes to editors

About Deloitte
In this press release references to Deloitte are references to Deloitte & Touche LLP, which is among the country's leading professional services firms.  Deloitte & Touche LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu ("DTT"), a Swiss Verein whose member firms are separate and independent legal entities.  Neither DTT nor any of its member firms has any liability for each other's acts or omissions.  Services are provided by member firms or their subsidiaries and not by DTT.  Deloitte & Touche LLP is authorised and regulated by the Financial Services Authority.