High street suffers worst April sales performance in a decade

Consumer confidence | Cut business rates to save high street, urge ‘red wall’ Tories
News

UK high street retailers suffered their weakest April sales performance in a decade, as shoppers continued to rein in discretionary spending.

Total like-for-like sales across discretionary categories fell 1.6 per cent in April compared with the same month last year, according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO.

The decline marks the worst April performance since 2016, excluding the Covid-19 pandemic when stores were closed.

BDO said the figures were particularly concerning as fashion, homewares and lifestyle all recorded a drop in total sales for the first time since March 2018, aside from the pandemic period.

In-store sales were especially weak, falling 1.8 per cent against a base of 2.3 per cent growth last year, as fragile consumer confidence and rising living costs continued to weigh on spending.

April also marked the eighth consecutive month in which sales growth failed to keep pace with inflation, meaning volumes continued to fall.

The early spring sunshine failed to drive stronger high street footfall, which declined 1.8 per cent in the first week of April, 0.8 per cent in the second week and 2.8 per cent in the third.

BDO head of retail and wholesale Sophie Michael said: “It’s hard to overstate just how difficult April has been for retailers.

“April is traditionally a positive month for the sector, as new spring and summer ranges arrive in store and consumer demand typically strengthens. Against that backdrop, these figures are particularly concerning.”

She added that, excluding the Covid-19 lockdown period, the last time April delivered negative like-for-like growth was in 2016, when severe weather disrupted trading nationwide as snow fell across the UK.

“Despite periods of warm, sunny weather this year, consumer behaviour remains firmly restrained,” Michael said.

“There is no sugarcoating the outlook for retail as rising fuel prices continue to have knock-on effects across household budgets, driving up the cost of essentials such as food, fuel and energy from an already high base.”

She warned that as households prioritise everyday spending, discretionary categories are facing a sustained pullback across fashion, homewares and lifestyle.

“There is little evidence at present to suggest a meaningful improvement in the near term, and retailers should continue to prepare for a challenging trading environment in the months ahead,” Michael said.

Sign up here to get the latest grocery and food news each morning

News

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

News

Share:

High street suffers worst April sales performance in a decade

Consumer confidence | Cut business rates to save high street, urge ‘red wall’ Tories

UK high street retailers suffered their weakest April sales performance in a decade, as shoppers continued to rein in discretionary spending.

Total like-for-like sales across discretionary categories fell 1.6 per cent in April compared with the same month last year, according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO.

The decline marks the worst April performance since 2016, excluding the Covid-19 pandemic when stores were closed.

BDO said the figures were particularly concerning as fashion, homewares and lifestyle all recorded a drop in total sales for the first time since March 2018, aside from the pandemic period.

In-store sales were especially weak, falling 1.8 per cent against a base of 2.3 per cent growth last year, as fragile consumer confidence and rising living costs continued to weigh on spending.

April also marked the eighth consecutive month in which sales growth failed to keep pace with inflation, meaning volumes continued to fall.

The early spring sunshine failed to drive stronger high street footfall, which declined 1.8 per cent in the first week of April, 0.8 per cent in the second week and 2.8 per cent in the third.

BDO head of retail and wholesale Sophie Michael said: “It’s hard to overstate just how difficult April has been for retailers.

“April is traditionally a positive month for the sector, as new spring and summer ranges arrive in store and consumer demand typically strengthens. Against that backdrop, these figures are particularly concerning.”

She added that, excluding the Covid-19 lockdown period, the last time April delivered negative like-for-like growth was in 2016, when severe weather disrupted trading nationwide as snow fell across the UK.

“Despite periods of warm, sunny weather this year, consumer behaviour remains firmly restrained,” Michael said.

“There is no sugarcoating the outlook for retail as rising fuel prices continue to have knock-on effects across household budgets, driving up the cost of essentials such as food, fuel and energy from an already high base.”

She warned that as households prioritise everyday spending, discretionary categories are facing a sustained pullback across fashion, homewares and lifestyle.

“There is little evidence at present to suggest a meaningful improvement in the near term, and retailers should continue to prepare for a challenging trading environment in the months ahead,” Michael said.

Sign up here to get the latest grocery and food news each morning

News

Social

SUBSCRIBE TO OUR DAILY NEWSLETTER

  • This field is for validation purposes and should be left unchanged.

Most Read

News

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

RELATED STORIES

Most Read

Latest Feature

Menu

Please enter the verification code sent to your email: