Fashnopsis:
- UK April retail sales fell 4% YoY, impacted by Easter timing and weather.
- Combined March-April sales show a modest 0.2% growth.
- Discounts failed to lift in-store and online non-food sales.
- Health & Beauty sales remained strong, computing sales rebounded.
- Consumer spending remains cautious despite economic improvement.
- Retail industry seeks government support for investment and growth.
April retail sales in the UK witnessed a 4% decline year-on-year, impacted by the timing of Easter and gloomy weather. However, a combined March-April analysis reveals a modest 0.2% growth, offering a more nuanced perspective.
Discounts failed to entice shoppers across all categories. In-store non-food sales (clothing, accessories) dipped 2.4%, while online non-food purchases saw a steeper 5.5% decline. Despite the overall slowdown, the online penetration rate for non-food items edged up to 36.2%.
Health and Beauty Shine, Tech Sales Rebound
While wet weather dampened sales in sectors like clothing and footwear, bright spots emerged. Health, beauty, and personal care categories displayed resilience. Surprisingly, computing sales (both online and in-store) experienced a welcome return to positive growth.
Cautious Consumers, Hope for Summer Rebound
Experts attribute the sluggish performance to consumer caution following a period of budgeting and cost-cutting. Economic improvements haven’t fully translated into increased spending.
Retail Industry Seeks Support
“Disappointing sales and dismal weather painted a gloomy picture for retailers,” commented Helen Dickinson, CEO of the British Retail Consortium. She highlighted the importance of a robust retail sector for a healthy economy and urged the government to implement pro-growth policies to stimulate investment, particularly in neglected regions.
Image Credits: cmcmarkets
