UK Retail Sales Witness 4% Drop in April 2024 Amidst Unfavorable Weather
In April 2024, the UK retail landscape faced a significant setback, with a 4% year-on-year decline in sales reported by the British Retail Consortium (BRC). This downturn sharply contrasts with the 5.1% growth observed in April 2023, falling below both the three-month and 12-month average growth rates of 0.5% and 2.2% respectively.
The BRC’s analysis, spanning the four-week period from March 31 to April 27, 2024, further reveals a nuanced picture. While food sales saw a modest 4.4% increase over the three-month period leading to April 2024, this growth pales in comparison to the robust 9.8% surge recorded in the same period last year, falling below the 12-month average of 6.7%.
Conversely, non-food sales experienced a 2.8% year-on-year decline over the three-month period to April 2024, a stark contrast to the 1.2% growth witnessed in April 2023. In-store non-food sales specifically declined by 2.4% year-on-year, indicating a notable shift from the 3.9% growth seen in the previous April and dipping below the 12-month average decline of 0.7%.
Online non-food sales also faced a downturn, dropping by 5.5% year-on-year in April 2024, compared to a 3.6% decline in the same period last year. This decline outpaced both the three-month and 12-month averages of 3.5% and 3% respectively. Despite this, the online penetration rate for non-food items saw a slight increase to 36.2% in April 2024, marginally surpassing the 12-month average of 36.1%.
Helen Dickinson OBE, Chief Executive of the BRC, attributed the subdued sales to dismal weather conditions, delaying typical Spring purchases despite retailers’ efforts to lure customers with substantial discounts. The dreary April particularly impacted sales of clothing, footwear, outdoor sportswear, DIY, and garden furniture. However, promotions in computing provided a silver lining, boosting sales as consumers sought to upgrade their technology following the post-pandemic surge.
Looking ahead, retailers are hopeful for improved sales during the summer months as social events resume, potentially bolstered by increased consumer confidence spurred by potential interest rate cuts.
A recent joint report by the BRC and Sensormatic IQ further underscored the challenges faced by the UK retail sector, revealing a 7.2% year-on-year decline in footfall in April 2024.
