Year-to-Apr UK retail sales fall sharply: CBI survey

While the earlier timing of Easter this year likely played a role in April’s decline, the fall in retail sales was nonetheless greater than expected. Sales are expected to continue falling next month, but at a slower pace (minus 19 per cent), CBI said in a release.

Sales were reported to be below ‘average’ for the time of year (minus 20 per cent, from 0 per cent in March). Sales are set to remain below seasonal norms next month (minus 25 per cent).

Orders placed on suppliers also fell sharply by 49 per cent in April, having now fallen for a full year. Orders are expected to decline again next month, though at a slower pace of 30 per cent.

Retailers’ stock positions were reported to be above ‘adequate’ (plus 8 per cent) in April, firming from a position of adequacy in March (minus 1 per cent). Nonetheless, stock adequacy remained below its long-run average (plus 17 per cent) and is expected to soften a little next month (plus 4 per cent).

“April’s sharp fall in retail sales was likely related to the earlier timing of Easter this year, so we should take it with a pinch of salt. Indeed, the sector is likely to benefit from some favourable tailwinds this year, as falling inflation continues to drive growth in households’ real earnings,” said CBI lead economist Alpesh Paleja.

“That being said, conditions do remain challenging on the ground. April’s fall in sales was faster than expected and retailers aren’t overly hopeful about the month ahead,” he added.

Fibre2Fashion News Desk (DS)