EMMA TAGGART
2 min read
Shops have received a boost from the recent hot and dry weather, with sales of meat, alcohol and cigarettes rising as BBQ season begins early.
Retail sales rose by 1.2pc in April, a significant acceleration from the 0.1pc increase seen in March and much higher than analysts’ forecasts of a 0.3 pc rise.
It marks the fastest growth since August 2023, as good weather over the Easter weekend and the sunniest April on record pushed consumers to spend more on food and drink. Food sales rose by a 3.9pc, largely recovering from declines in February and March.
Hannah Finselbach, of the Office for National Statistics, said: “After a poor couple of months, food sales bounced back with supermarkets reporting robust sales, while it was also a positive month for butchers and bakers, alcohol and tobacco stores.
“Looking more broadly, the three-monthly growth was the largest in nearly four years.”
Home and garden retailers received a boost from the weather, while clothing stores also benefitted.
Jacqueline Windsor, of PwC UK, said: “Fashion retailers saw their first quarter of year-on-year growth since August 2023 as shoppers rushed to refresh their spring-summer wardrobes to take advantage of the good weather.”
Kris Hamer, at the British Retail Consortium, said: “With the first taste of summer, consumer spending was up across the board, with sales of food and drink performing particularly well as people hosted Easter gatherings, barbecues, and picnics.
Consumer spending remained resilient despite fears that Rachel Reeves’s £25bn tax raid on employers, which took effect last month, would dampen sentiment.
The unexpectedly strong retail figures were announced as separate data showed consumer confidence rose slightly in May, boosted by the Bank of England’s interest rate cut this month.
GfK’s consumer confidence index rose by three points to -20 in May, with the public now more optimistic about the outlook for the UK economy over the next year and their personal finances.
Neil Bellamy at GfK said: “There’s an improvement across all five key indicators in May ... The measure for personal finances looking ahead for the next 12 months has moved out of negative territory, increasing by five points to + 2.”
Nicholas Found, at Retail Economics, warned that the outlook remained challenging given that recent tax rises are expected to squeeze retailers’ profits and push up prices.
Mr Found said: “Retailers welcomed some much-needed sunshine, as shoppers returned to DIY and gardening, while lighter evenings and social gatherings lifted food and drink spending, which had seen sluggish growth in recent months.
