Retail sales growth best for three years


couple with trolleyUK retail sales rose by 4.6% on a like-for-like basis during April, the best growth rate for three years, according to figures from the British Retail Consortium (BRC). Total sales were up by 6.3%.

But the figures reflect the good weather in April this year, against a cold and wet corresponding month in 2008. Also, this year Easter fell in April, whereas last year it was in March.

BRC director general Stephen Robertson said: “The best sales growth for three years is good news but let’s be cautious. A sunny Easter that fell in April this year is the key reason why overall sales are up compared with last year when Easter was in March and miserable.

“Sales of garden goods, outdoor leisure, clothing and food did well but other non-food sectors missed out on the seasonal boost and the total spent on food rose less than food inflation, indicating the amount sold dropped.

“Following a tough winter, there’s some pent up demand but there’s no reason to think customers suddenly feel flush or eager to spend. With unemployment set to grow through the rest of the year, mounting jobs worries will hold back spending for some time.

“It would be great if the historically weak performance of the last twelve months was behind us but we shouldn’t celebrate yet.”

Helen Dickinson, head of retail at analysts KPMG, said: “It would be dangerous to see the figures as a sure sign that consumer confidence has returned just yet. What they do show is that consumers are remaining resilient to the prospects presented by a gloomy economic outlook and, for the moment at least, are not making a step change in reducing their spending.”

Joanne Denney-Finch, chief executive of the IGD, said: “Food and drink sales for the last three months were 5.3% higher on a like-for-like basis than the same period a year ago.

“Easter gave April a big boost and encouragingly the second half of the month also performed well – thanks to some better spring weather.

“While many shoppers are delaying the purchase of big-ticket items, nearly three-quarters told IGD in a recent poll that they are ‘carrying on as normal’ with their grocery shopping – although of course they are seeking out the best deals and promotions, shopping around and scrutinising value.”

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