UK retail sales increase in April but inflation bites into volumes

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UK retail sales increased last month, though there were more signs of consumers being hurt by inflationary pressure, numbers on Tuesday showed.

According to the British Retail Consortium, sales rose 5.1% on-year in April. It compares to a 0.3% fall a year prior and is in line with the average growth rate over the past three months.

On a like-for-like basis, sales increased 5.2% year-on-year last month, topping the three-month average rise of 5.0%. In April 2022, sales had fallen 1.7% year-on-year on a like-for-like basis.

Over the three months to April, food sales increased 9.8% and non-food sales rose 1.2%.

BRC Chief Executive Helen Dickinson said: ‘While retail sales grew in April, overall inflation meant volumes were down for both food and non-food as customers continued to adjust spending habits. Clothing sales underperformed as the poor weather left customers thinking twice before decking out their summer wardrobe. Meanwhile, a boost to overseas tourism over Easter helped jewellery, watches and cosmetics.

‘Retailers hope sales will improve over the warmer summer months, especially as consumer confidence stabilises and inflation begins to ease. However, they continue to face huge cost pressures from a tight labour market, high energy prices, and other rising input costs, with many retailers reporting lower profits this year as a result.’

IGD analyst Susan Barratt said food and drink sales followed a familiar pattern last month.

‘Food and drink sales in April continued the same trajectory seen in recent months; volume sales were negative and value sales were positive, driven by ongoing inflation. In response, retailers have been stepping up their support to shoppers, with further high-profile innovation and investment in loyalty schemes in April, providing access to better prices,’ Barratt said.

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