April Retail Sales

UK retail sales were up 2.4% on a like-for-like basis compared with April 2006 according to the British Retail Consortium.

 

The three month trend of growth slipped from 3.5% to 3.3% for like for like sales while total sales grew to 5.7% from 5.5% reflecting the ever increasing growth of retail space.  The warm Easter weather boosted sales in clothing and footwear and also benefited the DIY, gardening and outdoor leisure market.

 

 

 

 

Kevin Hawkins, Director General, BRC comments: “This is a good result, helped by the exceptionally warm and dry weather which prevailed through most of the month. Predictably, some categories did better than others, although there was a general falling-off in sales growth towards the end of the month. Now that Easter distortions are out of the way, we should get a clearer reading of the real level of sales growth as May progresses.”

 

Helen Dickinson, Head of Retail, KPMG comments: "The continuation of the warm weather encouraged women out to buy this month, with footwear in particular being the best performing sector - women's clothing took the top spot in March.  However, despite April's Easter break, home-related sectors still found the going tough.  All in all, the results for April were below the trend of the last quarter and could represent the beginning of a lower growth phase as the comparatives become tougher and the outlook less favourable."

 

However reports from the Office for National Statistics were not so positive with reports that although retail sales remain robust there was a slights decrease in sales volume in April.

 

The volume of retail sales in the three months from February to April was 1.2% higher than the previous three months.

 

Total sales volume for three months was the highest since November 2004 and were up 4.8% analysis of monthly figures show that the total sales volume decreased by 0.1% between March and April.  Sales levels according the national statistics fell in household goods and non-specialised stores.  Non-store retailing and clothing saw sale levels grow.  The average weekly value of sales in April was £4.9 billion, 5% higher than in April 06.

 

Paul Clarke, National Director, Retail & Wholesale sectors, Barclays business banking said “The glorious weather in April, including a sun drenched Easter weekend, boosted sales of summer clothes and DIY.  However household goods did not fare as well.  Overall, the underlying rate of growth of retail sales remains robust.”

 

“Looking forward to May there are growing concerns that consumer spending is coming under increasing pressure.  Strong worldwide demand for commodities will continue to impact price in both the food and drink and household good sectors.”

 

Conflicting reports were also released on the numbers of shoppers in the towns, the UK Retail footfall Index reports that April saw a 2% drop in shopper numbers while the SPSL, Retail Traffic Index reported that shopper numbers for April were up 2.6% on April 2006.

 

Sector Performance

Food and drink

 

Following a good March sales growth slowed.  Easter gave it usual boost to confectionary but the warm weather slowed chocolate sales after Easter while driving the sales of salads and cold meats, barbecue foods, soft fruit and beers, wines and soft drinks.

 

Clothing

 

The warm sunny weather drove sales growth to its strongest since last October, with particularly good gains in womenswear, albeit against a small decline last April.  Dresses, jeans, vests, casual tops and trousers, as well as the more formal crops and city shorts, did well.

 

Footwear

 

Sales growth was the best since May 2004, though against flat sales in April 2006.  Women’s and children’s showed excellent growth but men’s, which had enjoyed a better start to this year, was only just up on a year ago.

 

Electrical and Electronic

 

It was a slightly slower month for most, as in the sunny weather, shoppers concentrated on clothing and outdoor rather than indoor products.  The warm weather did help refrigeration and cooling, but other white goods were generally flat and heating / drying products suffered.

Department Stores

 

It was a slower month for most with strong growth in clothing, footwear and outdoor leisure partly offset by weaker sales of homewares, epically big-ticket items.

 

DIY / Gardening

 

Sunny weather gave an excellent boost to outdoor DIY and gardening, espically over the Easter weekend.

 

Homewares

 

Home accessories and house textiles both slowed markedly as the sun turned shoppers’ thoughts to outdoors rather than indoors.  Sales were lower than a year ago, the weakest since July 2004.

 

Furniture & Carpets

 

Overall sales dropped back below year-earlier levels, after two months of flattish salesm but were not as poor as in late 2006.  Beds, bedroom and lounge furniture slowed and fitted kitchens and bathrooms were steady.

 

Chemist & Beauty

 

Toiletries and cosmetics growth strengthened further but year-on-year gain remained below the second-half 2006 average.  Suncare did well and hayfever remedies began to take over from cough / cold.

 

Leisure Goods

Home entertainments were mixed, amid strong competition and for DVDs and computer games, against strong releases last year.

 

Mail Order

 

Clothing and footwear sales were driven by the warm weather, some gains in electrical while homewares struggled, especially big ticket items.