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Retail like-for-like sales edge down in April following weak demand for fashion items

UK retail sales edged down 0.9% on a like-for-like basis in April while total sales were flat. The figures released by the British Retail Consortium and… View Article

GENERAL MERCHANDISE NEWS

Retail like-for-like sales edge down in April following weak demand for fashion items

UK retail sales edged down 0.9% on a like-for-like basis in April while total sales were flat.

The figures released by the British Retail Consortium and KPMG in their monthly retail sales monitor show there was weak demand for fashion and footwear.

BRC chief executive Helen Dickinson said: “April saw the second month of flat sales for UK retailers with positive food sales offset by record declines in fashion. As a result, the 12-month average growth for non-food sales slowed to 2.5% while for food sales it nudged back into positive territory at 0.1%.”

Sales in the home category continued to grow to make it the best performing sector.

Dickinson continued: “Overall, flat total sales mask a very mixed picture; some retailers benefitting from the healthy housing market, while others are evidently more susceptible to the effects of lower consumer confidence and a higher proportion of disposable income going into leisure and entertainment. While glimmers of hope are evident, the rapid pace of change in the industry, increasing cost pressures and other businesses burdens remain a cause for concern.”

Meanwhile, online sales of non-food products in the UK grew by 6.6% in April compared to the same month a year earlier. This was the slowest growth since April 2013.

David McCorquodale, head of retail at KPMG, said: “Despite a further slowdown in online sales during April, penetration rates remained high as cleverly timed discounting and promotional activity proved online players were no ‘April fools’.

“Looking ahead, retailers may well need to bolster online offerings as warmer temperatures start to tempt consumers back into the shops.”

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