Retail Sales Monitor
Retail Sales Monitor: Easter Fails to Light Up Retail Sales
Helen Dickinson OBE, Chief Executive, BRC:
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% 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:
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% year on year.
Health, beauty and personal care sales remained resilient categories and there was a surprised return to positive sales growth for computing for the first time in over two years, both instore and online. The food category is always buoyed by Easter, but looking at the three month figures food and drink shows positive sales growth, albeit dampened volumes. 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.
Food & Drink sector performance, Sarah Bradbury, CEO, IGD:
With Easter falling in March this year, the UK grocery market was always going to face a tough set of annual comparisons in April. Sales and volumes have predictably both turned negative compared to the same period last year. But there is hope - with inflation continuing to exit the market, increased promotional activity among retailers, and two upcoming bank holidays in which sales and volumes will surely improve.
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expected, confidence in the year ahead continues to grow steadily. Shopper confidence at a total level increased slightly in April as inflation continued to ease off slowly. However, as National Price Hike Day and the 2p cut to national insurance have both come into effect, we continue to anticipate a divergent experience in recovery for shoppers.
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