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Retail flat in April, but home stores 'fare well'

Published: 10 May 2016
April saw a second month of flat sales for UK retailers, according to the BRC, but home accessories and furniture sales fared well "as retailers reaped the benefits of well-timed promotions."
Retail flat in April, but home stores 'fare well'
Home categories were ranked as the best performing sector, which, according to the BRC chief executive Helen Dickinson, was a result of "a continuing rise in the number of home owners enjoying record low interest rates."

The 12 month average growth for non-food sales was 2.5%. Added Ms Dickinson: "Overall, flat total sales mask a very mixed picture; some retailers benefitting from the healthy housing market, while others are evidently more susceptible to the effects of lower consumer confidence and a higher proportion of disposable income going into leisure and entertainment. While glimmers of hope are evident, the rapid pace of change in the industry, increasing cost pressures and other businesses burdens remain a cause for concern."

KPMG head of retail David McCorquodale added: "Overall, retail sales slowed during April with temperatures well below the average for the time of year. Looking at the three months to April, non-food like-for-like growth was particularly weak, especially for fashion and footwear, as the cooler weather dampened the launch of spring/summer ranges.

"On the brighter side, furniture and home accessories continued to fare well as retailers reaped the benefits of well-timed promotions. And there was also some mild relief for the grocers with total food and drink sales inching up slightly versus April 2015. However, as consumers still appear to be hooked on a diet of discounts, deflationary trends in the sector look set to continue."

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