KPMG sees April trading encouraging
Build-up to Easter weekend significant
May 13 2003
Year-on-year retail sales growth of 7.6 per cent in the UK in April, with 4.8 per cent growth on a like-for-like basis, are encouraging overall, according to KPMG.
However, with performance between sectors varying considerably according to the British Retail Consortium-KPMG Sales Monitor, retailers are having to work hard for sales.
The April like-for-like growth figure is the highest since August 2002.
The combined results for March and April show that sales have grown at a rate of 1.8 per cent on a like-for-like basis and 4.5 per cent in total. This gives a better reflection of underlying sales growth for the two months as it eliminates the impact of the later Easter.
The pattern of spending shows that the build up to the Easter weekend was significant and contributes largely to the April upturn. After this peak, sales slowed to the levels seen in previous months.
The three-month trend rates of growth increased slightly from 1.6 per cent in March to 1.7 per cent in April for like-for-like sales, and from 4.3 per cent to 4.4 per cent for total sales.
Amanda Aldridge, head of retail at KPMG said: “Overall the figures for April are quite encouraging. Within the figures there is significant variance in performance between sectors with strong performances in food and drink, garden products and other seasonal items for Easter and a surge in children’s clothing and footwear in the school holidays.
“Young fashion also sold well, boosted by the good weather, exciting summer ranges and a wide choice on the high street. At the other end of the spectrum, sales of furniture and floorcoverings were not helped by the good weather as their customer base turned their attention to their gardens and stayed away from the stores.
“Combining March and April to smooth out the timing of Easter, underlying growth levels appear to be holding steady. Retailers are having to work hard to keep people shopping and remain concerned that consumer confidence is very fragile.”
Bill Moyes, director general of the BRC said: “The headline figures have been boosted largely due to the change of timing of Easter this year. However there is a sharp downward trend. Downward sales, static prices and rising costs mean retailers are having their margins squeezed. The result will be lower investment and fewer jobs. Action is needed to raise confidence at home by lowering interest rates and from abroad by reflating sagging global growth.”
