According to the British Retail Consortium (BRC) and KPMG sales monitor, the U.K. retail sales increased by an annual rate of 0.5% on a like-for-like basis in May, after a 0.9% fall in April.

On a total basis, retail sales climbed 1.4% year-on-year in May.

"Clothing made a big comeback this month after suffering declines in April. This appears to be due to consumers waiting for just the right moment before embarking on their pre-summer spending," BRC Chief Executive, Helen Dickinson, said.

"However, with signs that the UK's economy is slowing it's unlikely that this is the beginning of a complete reversal of fortunes. The uncertain outlook means that customers will remain cautious with their spending, therefore we expect sales figures to remain volatile for the time being," she added.