13 May 2008


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Grocery sales buck April retail sales fall

industry statistics

UK retail sales fell in value by 1.5% during April, according to the latest figures from the British Retail Consortium, out today.

But comparisons are difficult because Easter fell in April last year and the weather was warm and sunny, whereas this year Easter fell in March and there was snow and rain.

Underlying trade remained tough, however, said the BRC.

Food sales picked up after slowing in March but were still not as strong as during January and February.

Clothing and footwear fell to their worst for at least eight years.

Stephen Robertson, director general of the BRC, said: “This is the first time in three years we’ve had two months in a row of year-on-year falls in like-for-like sales, further evidence that hard-pressed customers are really watching the pounds.

“With higher fuel and utility bills eating away at people’s spare cash, they are concentrating on essentials like food.

“Despite heavy discounting, clothing and footwear were at their weakest for at least eight years and more expensive housing-related goods continue to struggle.

“Retailers will look to the recent sunny weather to provide some boost but with the economic fundamentals remaining weak, there seems no reason for these tough trading conditions to improve soon.”

Helen Dickinson, head of retail at KPMG, said: “The food sector picked up on the previous month's lacklustre performance and delivered strong performance.”

Joanne Denney-Finch, chief executive of the IGD, said: “Grocery retail shows continued growth in sales values, although the annual rate of change is slowing a little.

“Sales growth will be diluted by price inflation in some categories, although the precise rate of inflation experienced by UK shoppers remains the subject of debate.

“On the positive side, grocery retail is performing relatively well, despite difficult economic conditions. This may reflect focusing of consumer spending on non-discretionary items, underlining the ‘necessity’ characteristics of the grocery industry.

“Economic challenges may act as a spur for changes in established patterns of consumer spending. Retailers are well aware of this and are adjusting their offers as necessary to maximise shopper retention whilst reducing vulnerability to switching.”

The cold, snowy start to the month helped meat, vegetables, pies and pizzas while fruit, salads, ice-cream and barbecue foods were much weaker than over the warm sunny Easter weekend a year ago, the BRC said.

With household budgets under pressure, it added, shoppers looked for low prices and good value, but some noted premium lines and ready-to-cook ranges holding up well.

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