Easter Food Spending Sparks Rise in April Retail Sales

The growth is much faster than the 12-month total average growth of 2 per cent and the highest since February 2014.

According to the research, overall April UK retail sales increased by 5.6 per cent on a like-for-like basis from April 2016, when they had decreased 0.9 per cent from the preceding year.

Helen Dickinson OBE, chief executive of the BRC said, “As expected, the Easter holidays provided the welcome boost to retail sales, which goes some way to making up for the disappointing start to the year. That said, the positive distortion from the timing of Easter was largely responsible for the month’s growth and looking to the longer-term signs of a slowdown, the outlook isn’t rosy.

“Taking a closer look at the sales figures, consumer spend on food and non-food items is diverging. Food categories continue to contribute the most weight to overall growth, although food inflation has a part to play in this.

“Shop prices are still down overall although other items of consumer spending are increasing headline inflation and hence driving a tightening of purse strings. Although today’s figures do indicate that consumers are still willing to spend, with a cocktail of rising costs and slowing wage growth as the backdrop, conditions for consumers will get tougher. The next government needs to deliver a plan that puts consumers first in its economic policies and the forthcoming Brexit negotiations.”

Paul Martin, UK head of retail at KPMG said, “April’s sales provided a brief period of respite for retailers following a relentless start to the year. However, much of the rise was driven by the timing of Easter and the growing inflationary pressures the sector is facing, rather than a sudden upswing in consumer confidence.

“Food and drink sales soared significantly in April, suggesting that feasts remain at the heart of festive holidays. That said, in the ultra- competitive grocery sector, these growth figures should be taken with a hefty pinch of salt, with margins under significant pressure and profitability remaining a concern.”