According to recent industry data, cold and wet weather and cautious spending due to high interest rates and energy bills have led to a slow start to spring for retailers and restaurants.
Sales in March and April were nearly flat compared to last year’s period, despite rising prices due to inflation. This indicates a decline in goods sold during the crucial Easter period.
In the four weeks leading up to the end of April, sales dropped by 4%, partly influenced by Easter falling earlier this year in March. Non-food sales were the most affected, with a nearly 3% decrease in both in-store and online orders.
Helen Dickinson, CEO of the British Retail Consortium (BRC), noted that shoppers delayed spring purchases despite significant discounts offered by retailers.
Non-food retail sales drop: outdoor, clothing and dining sectors face significant declines.The combination of dismal weather and poor sales contributed to a bleak start to spring. She highlighted that April’s wet weather particularly impacted sales of clothing, footwear, outdoor sportswear, DIY items, and garden furniture. However, discounts on computers did boost sales, as many people upgraded devices bought during the pandemic.
The number of shoppers visiting retail destinations dropped by over 7% in April, much worse than the 1.3% decline in March. Retailers are now hoping for improved sales over the summer as social events increase and consumer confidence potentially rises with a possible cut in interest rates.
Despite caution on big-ticket purchases like DIY projects and furniture, spending on travel and outings, including trips to pubs, has increased. Airline spending rose by more than 6%, while restaurant sales fell by 13%. Nearly half of consumers reported cutting back on discretionary spending, especially on takeaways and dining out, according to Barclays.