UK retail sales surge 5.1% in April 2023: Report

Over the three months to April, non-food sales increased 1.2 per cent on a total basis and 0.8 per cent on a like-for-like basis, which is higher than the 12-month total average growth of 0.2 per cent. Non-food sales were also in growth year-on-year for the month of April.

In-store non-food sales increased by 3.9 per cent on a total basis and 3.3 per cent on a like-for-like basis since April 2022. This is above the total 12-month average growth of 3.6 per cent, as per the BRC-KPMG Retail Sales Monitor report.

However, online non-food sales saw a decline of 3.6 per cent in April, which is steeper than the 3-month average decline of 2.9 per cent but shallower than the 12-month decline of 4.4 per cent. The proportion of non-food items bought online, or penetration rate, decreased to 37.3 per cent in April from 38.8 per cent in April 2022.

“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. Government needs to ensure that any additional regulatory cost burdens are kept to a minimum as these add to inflation,” said Helen Dickinson, chief executive, British Retail Consortium.  

Paul Martin, UK head of retail, KPMG, said: “Retail sales held steady in April with 5 per cent growth on last year, but against a background of higher inflation year-on-year, masking how much is actually healthy growth for the sector.  

“It was a mixed bag for the high street, with sales of footwear, food and jewellery performing strongly whilst more categories slipped into negative territory as clothing and computing continued to witness declining sales. Online retailers continued to feel the pressure in April, with both sales growth and penetration rates falling as the market rebalances after the pandemic and consumers choose to bargain hunt in store.

“Retailers will be hoping that the coronation, coupled with a month full of bank holidays and inflation levels starting to head in the right direction, will boost consumer confidence significantly enough to start to see real, profitable growth.”

Fibre2Fashion News Desk (DP)