British retail sales post greatest monthly fall in 20-plus years

British retail sales fell by the greatest margin more than 20 years last month.

The Guardian reports that British Retail Consortium (BRC) and KPMG found that sales were down by 3.1 per cent in April, the biggest decline since the survey was launched in 1995.

The latest official retail sales figures, released by the Office for National Statistics, showed sales fell 1.2 per cent in March, largely due to harsh weather conditions which prompted shoppers to stay home. Non-food categories were hit hardest.

Analysts say any short term recovery in British retail sales is unlikely, given the political and economic environment.

“With much of the spending in preparation for the bank holiday weekend falling in March this year, a record low in sales growth, in contrast to last year’s record high, does not come as a surprise,” said BRC chief executive, Helen Dickinson. “However, even once we take account of these seasonal distortions, the underlying trend in sales growth is heading downwards.

“The first glimpse of summer may have temporarily lifted clothing and footwear, but non-food sales overall continue to be weak. Consumers’ discretionary spending power remains under pressure and the reality is, that with only a gradual return to solid growth in real incomes expected, the market environment is likely to remain extremely challenging for most retailers,” she said.

Other commentators were equally pessimistic.

“Retailers have got their work cut out to overcome seemingly endless obstacles, whether it be unpredictable weather or the introduction of new regulation, like the EU’s General Data Protection Regulation,” said KPMG head of retail Paul Martin.

“The upcoming months will provide a number of opportunities for retailers to drive sales and navigate this assault course, including bank holidays, World Cup and of course the royal wedding, although it is clear that trading will remain challenging.”

The BRC study also calculated sales on a like-for-like basis after factoring in reduced shop-floor space from the collapse of retail businesses and downsizing by chain stores. On that basis, British retail sales fell by 4.2 per cent in April.

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