Retail sales growth climbs to ten-year high in April
UK retail sales volumes increased by 6.9% in April compared to the same month last year to mark the highest year-on-year growth in ten years.
The figures released by the Office for National Statistics also show that retail sales volumes rose by 1.3% in the month compared to March 2014. With the exception of petrol stations, all stores saw year-on-year increases.
The food sector posted its strongest year-on-year growth since January 2002, with sales increasing by 6.3% as feedback from food store retailers suggested that a better than expected Easter and improved weather conditions helped to boost trade.
Non-food sales rose by 6.5% compared with a year earlier.
Never Miss a Retail Update!The ONS figures also reveal that the average weekly spending online in April 2014 was £707.5 million which was an increase of 13.3% on April last year. The amount spent online accounted for 11% of all retail spending excluding automotive fuel compared with 10.4% in April 2014.
David McCorquodale, UK head of retail at KPMG, said: “This is very much a sentiment led recovery for the retail sector. While wage growth is lending a helping hand, ultimately consumers need to feel confident enough to spend their hard earned cash, especially when it comes to non essential big ticket items. If the good news keeps on coming and the economic recovery remains on track, this will be a good year for the retail sector.
“Areas of concern do remain, however. Some of the bigger grocers are propping up sales volumes with heavy promotional campaigns. This strategy is prompting some unease within the investor community, who are waiting to see how these price cuts will impact the grocers’ bottom line. However, whilst they may not be welcomed by investors, these price wars are good news for average consumers, who are being heavily courted with discounts and offers for their custom.”
