Consumer confidence ‘crushed’

CONSUMERS have “put the brakes” on their shopping habits due to the soaring cost of living, according to figures.

The latest BRC-KPMG retail sales monitor revealed that sales dipped in April after a sharp downturn in consumer confidence.

Separate figures from Barclaycard showed that credit card spending on retail and eating out slowed last month as people tightened their belts.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “The rising cost of living has crushed consumer confidence and put the brakes on consumer spending.”

The data from the BRC and KPMG reported that total sales fell 0.3% in April – the first decline in 15 months. On a like-for-like basis, UK retail sales dropped by 1.7% as shoppers reduced their spending on big ticket items.

Ms Dickinson added: “Sales growth has been slowing since January, though the real extent of this decline has been masked by rising inflation.

“Big ticket items have been hit hardest as consumers reined in spending on furniture, electricals and other homeware, compounded by delays on goods coming from China.”

Non-food sales increased by 6.9% over the three months to April, compared with the same period last year, driven by higher inflation.

Paul Martin, UK head of retail at KPMG, said: “With interest rates and inflation rising and the Bank of England warning of a possible recession, the squeeze on disposable household income is starting to have an impact on the high street.

“Against a backdrop of falling consumer confidence, the retail sector has a bumpy time ahead as they face spiralling cost pressures from all directions.”

Figures from Barclaycard showed that consumer card spending increased by 18.1% in April, compared with pre-pandemic figures from the same month in 2019.