UK Discretionary Retail Sales Drop Sharply in April as Costs and Confidence Weigh
April Retail Sales Performance and Contributing Factors
Discretionary Retail Sales Decline
LONDON, May 1 (Reuters) - British discretionary retail like-for-like sales slid 1.6% year-on-year in April, their weakest April performance in a decade outside the pandemic, data from accountancy and business advisory firm BDO showed on Friday.
Impact of Consumer Confidence and Living Costs
Weak consumer confidence and rising living costs continued to weigh on spending, with sales falling across fashion, home wares and lifestyle for the first time since March 2018.
Retailer Commentary
“It’s hard to overstate just how difficult April has been for retailers," said Sophie Michael, BDO's head of retail and wholesale, noting the month typically sees a seasonal lift.
Key Factors Affecting Retail Sales
Rising Fuel Prices and Inflation Fears
• Rising fuel prices due to the Iran war impacted household budgets, driving up the cost of essentials from a high base.
• British retailers reported the sharpest year-on-year decline in sales in more than 40 years as the Iran war stoked inflation fears, a survey from the Confederation of British Industry showed.
Individual Retailer Performance
• Clothing chain Primark said April trading has been soft.
Reporting Credits
(Reporting by James DaveyEditing by Bernadette Baum)
