Easter shift sparks volatility; UK retail sales down 4% YoY in April

To counteract the distortions from Easter's earlier arrival, a combined sales figure for March and April was computed. This adjusted figure reflected a modest average growth of 0.2 per cent, underscoring the challenges the retail sector faced in these months, the British Retail Consortium (BRC) said in a press release.

Non-food sales experienced a steep decline, with a year-on-year decrease of 2.8 per cent over the three months to April. This was against a growth of 1.2 per cent in April 2023 and was more severe than the 12-month average decline of 1.5 per cent. The downward trend persisted in April, reflecting the difficulties faced by non-food retailers.

In-store non-food sales saw a year-on-year decrease of 2.4 per cent over the three months to April, in contrast to a 3.9 per cent growth in April 2023. This decline was more pronounced than the 12-month average decrease of 0.7 per cent.

Online non-food sales were not spared either, with a year-on-year drop of 5.5 per cent in April, compared to a 3.6 per cent decline in April 2023. These figures exceed the 3-month and 12-month declines of 3.5 per cent and 3.0 per cent, respectively.

Despite the decline in online sales, the online penetration rate for non-food items edged up to 36.2 per cent in April, slightly above the 12-month average of 36.1 per cent and April 2023's rate of 36.1 per cent. This indicates a continuing reliance on online shopping for non-food items despite the overall downturn.

Helen Dickinson OBE, chief executive of BRC, said: “Dismal weather and disappointing sales led to a depressing start to Spring for retailers, even accounting for the change in timing of Easter. People delayed typical Spring purchases despite retailers’ attempts to entice customers with heavy discounts. A dull, wet April dampened sales growth for clothing and footwear, especially outdoor sportswear, as well as DIY and garden furniture. Promotions in computing did boost sales as many sought to upgrade their tech a few years post the pandemic surge in tech sales. Many retailers are hoping for brighter sales over the summer months as social events ramp up, and consumer confidence could improve with a potential cut in interest rates.

“A strong retail industry is vital for a strong economy, and it is vital the next Government recognises this if it wants to boost investment in our towns and cities. Retail is nearly 10 per cent of employment in every region and plays a unique role in building communities and generating local economic growth. The Government must champion pro-growth policies to help unlock important investment in many left-behind regions.”

Linda Ellett, UK head of consumer, retail & leisure, KPMG, said: “The positive sales growth seen in March was short lived as the impact of an early Easter and continued wet and chilly weather saw April retail sales fall by 4 per cent year on year. Online and high street sales across categories that can be delayed, including clothing and footwear, remain subdued as no one is rushing out yet for summer clothing.

“On paper consumers should arguably be feeling more able to go out spending again as economic conditions improve, but on the back of two years of budgeting and cost cutting, cautious consumers are releasing the purse-strings much more slowly than they tightened them, choosing to save or pay down debt. The positive sales figures seen in March due to an early Easter demonstrate the importance that triggers such as warmer weather, events and occasions can have in helping to deliver the necessary impact required to get consumers spending again. Retailers will be hoping that there might still be an early summer interest rate cut, a strong performance from England and Scotland in the Euros, and an uptick in temperatures. Together this might be the trigger to boost consumers’ willingness to spend in the weeks ahead.”

Fibre2Fashion News Desk (KD)