Sales surge but traders are told to be cautious
RETAILS SALES surged in April thanks to the late scheduling of Easter holidays, but shop owners are being told to remain cautious despite the strong figures.
Data from the British Retail Consortium (BRC) and KPMG showed that like-for-like UK retail sales jumped 5.6 per cent last month compared to a 0.9 per cent decline a year earlier, while total sales climbed 6.3 per cent.
That is the highest level for total sales since Easter last took place in April in 2011.
Paul Martin, UK head of retail at KPMG, said: “April’s sales provided a brief period of respite for retailers following a relentless start to the year.
“However, much of the rise was driven by the timing of Easter and the growing inflationary pressures the sector is facing, rather than a sudden upswing in consumer confidence.”
Food sales were a main driver, increasing 2.4 per cent on a likefor-like basis and 3.6 per cent on a total basis in the three months to April.
That is compared with a 0.3 per cent rise in like-for-like non-food sales – which were up 0.7 per cent on a total basis – over the same period.
Mr Martin said that while the figures seem to be good news for supermarkets, he warned they should be taken with a “hefty pinch of salt” given that margins in the competitive grocery sector are still under significant pressure, making profitability an ongoing concern.
Supermarkets have started to increase their prices to help offset the pressure of rising import costs, resulting from the postBrexit vote collapse of the pound.