The British Retail Consortium (BRC) has unveiled a significant 7% surge in total retail sales for April, a month noted for being the “sunniest April on record.”
In detail, total retail sales in the UK witnessed a notable rise of 7% year-on-year in April 2024, contrasting sharply with a downturn of 4% recorded in April 2023. This performance not only surpassed the three-month average growth rate of 2.9% but also exceeded the annual average growth of 1.4%. Clearly, April’s sunny weather has had a transformative effect on consumer spending patterns.
When analyzing the combined sales figures for March and April, a 4.3% year-on-year increase is evident for this two-month period, offering a more robust perspective by accounting for the timing of Easter. This adjustment highlights the resilience of the retail sector despite economic challenges.
Focusing on food sales specifically, a remarkable increase of 8.2% year-on-year was reported in April. This is particularly significant when compared to a decline of 1.6% observed in April 2023. This growth also outperformed the three-month average of 2.1% and the 12-month average of merely 0.1%, indicating a robust recovery in the food retail sector.
In her analysis, Helen Dickinson, the BRC’s chief executive, commented, “The sunniest April on record brought with it a boost to retail sales. While the stronger performance was partially a result of Easter falling in April this year, the sunshine prompted strong consumer spending across the board.”
However, Dickinson also cautioned about looming economic pressures: “Food sales performed well as people brought together their family and friends for Easter celebrations… but clouds loom on the horizon as new costs begin to bite. Even a strong April performance will do little to make up for the extra £7 billion facing the industry this year.”
She pointed out the challenges posed by rising costs stemming from increased Employer National Insurance Contributions and the National Living Wage, both of which rose last month. Furthermore, retailers anticipate an additional £2 billion bill due to a new packaging tax being implemented later this year. To ensure the sustainability of high streets, Dickinson emphasizes the need for government intervention: “If the Government wants to secure the future of our high streets, then it must ensure that no shop pays more as a result of the upcoming business rates reforms, or it will be our local communities that pay the price.”
Adding to this narrative, Sarah Bradbury, CEO of the Institute of Grocery Distribution, provided insights into the food sector’s performance. She stated, “April saw a welcome boost for the market and shoppers, thanks to sporadic spells of warmer weather, interest rate cuts, and the long Easter weekend, which lifted overall confidence by a point. However, the persistent challenge of food price inflation, which climbed to 2.6% in April from 2.4% in March, continues to weigh heavily on both businesses and households. As they grapple with rising costs, we foresee limited further gains in shopper confidence.”
As we look ahead, the retail sector must navigate a complex landscape influenced by consumer behavior, economic pressures, and governmental policies. Only time will tell how these factors converge to shape the future of retail in the UK.
