Early Easter impacts April’s retail sales
Retail sales fell by 2.4% in April on a like-for-like basis compared to the same month last year. On a total basis sales were down 1.3%
The figures published by the British Retail Consortium and KPMG in their monthly shop price index were negatively distorted by the inclusion of the build-up to Easter in March this year. When the distorting effect of Easter is removed, the three month average showed the strongest underlying growth since last June.
Helen Dickinson, BRC director general, said: “April witnessed a solid performance for fashion and beauty retailers; particularly welcome following a disappointing Autumn/Winter season. While the early Easter this year heavily distorted April’s figures, across all categories, we see the best three month average year-on-year growth since June of last year; a clear indication that confidence among consumers is slowly improving and that despite profitability being under intense pressure due to changes in shopping habits and promotional activity, retail remains a robust pillar of the economy.”
The BRC said total non-food sales grew by 3.2% over the three months to April with homewares the only category to show a dip in sales.
Meanwhile, total food sales edged up 0.4% over the three month period.
Looking at online, sales of non-food products in the UK grew by 15.4% in April versus a year earlier, when they had grown by 11.2%. This was the best growth since October 2014.
David McCorquodale, head of retail at KPMG, said: “The online channel recovered in April to record its best month for half a year and contributed significantly to retail sales growth. This month’s figures highlight that online sales remain a crucial pillar of retailers’ revenues and an important channel for the consumer. “With a majority Government now in place, retailers will welcome the stability which allows them to invest with confidence in omni-channel capabilities and adapt to changing consumer demands.”
