BRC-KPMG retail sales monitor – APRIL 2023
Sales figures are not adjusted for inflation. Given that both the
April SPI (BRC) and March CPI (ONS) show inflation running at
historically record levels, the rise in sales masked a much
larger drop in volumes once inflation is accounted for.
Covering the four weeks 2 – 29 April
2023
-
UK Total
retail sales increased by
5.1% in April, against a decline of 0.3% in April 2022. This is
in line with the 3-month average growth of 5.1% and above the
12-month average growth of 3.0%.
-
UK Like-for-like retail sales increased
by 5.2% in April, against a decline of 1.7% in April 2022. This
was above the 3-month average growth of 5.0% and the 12-month
average growth of 2.7%.
-
Food sales increased 9.8% on a Total
basis and 10.0% on a Like-for-like basis over the three months
to April. This is above the 12-month Total average growth of
6.3%. For the month of April, Food was in growth year-on-year.
-
Non-Food sales increased 1.2% on a Total
basis and 0.8% on a like-for-like basis over the three-months
to April. This is above the 12-month Total average growth of
0.2%. For the month of April, Non-Food was in growth
year-on-year.
- Over the three months to April, In-store
Non-Food sales increased 3.9% on a Total basis and
3.3% on a Like-for-like basis since April 2022. This is above the
Total 12-month average growth of 3.6%.
-
Online Non-Food sales decreased by 3.6%
in April, against a decline of 13.9% in April 2022. This is
steeper than the 3-month average decline of 2.9% and shallower
than the 12-month decline of 4.4%.
- The proportion of Non-Food items bought online (penetration
rate) decreased to 37.3% in April from 38.8% in April 2022.
Helen Dickinson OBE, Chief Executive | British Retail
Consortium
“While retail sales grew in April, overall
inflation meant volumes were down for both food and non-food as
customers continued to adjust spending habits. Clothing sales
underperformed as the poor weather left customers thinking twice
before decking out their summer wardrobe. Meanwhile, a boost to
overseas tourism over Easter helped jewellery, watches and
cosmetics.
“Retailers hope sales will improve over the warmer summer months,
especially as consumer confidence stabilises and inflation begins
to ease. However, they continue to face huge cost pressures from
a tight labour market, high energy prices, and other rising input
costs, with many retailers reporting lower profits this year as a
result. Government needs to ensure that any additional regulatory
cost burdens are kept to a minimum as these add to inflation.”
, UK Head of
Retail | KPMG
“Retail
sales held steady in April with 5% growth on last year, but
against a background of higher inflation year-on-year, masking
how much is actually healthy growth for the sector.
“It was a mixed bag for the high street, with sales of footwear,
food and jewellery performing strongly whilst more categories
slipped into negative territory as clothing and computing
continued to witness declining sales. Online retailers continued
to feel the pressure in April, with both sales growth and
penetration rates falling as the market rebalances after the
pandemic and consumers choose to bargain hunt in store.
“Consumer demand has so far been fairly resilient to the twin
drags of high inflation and high interest rates, but as
government energy support comes to an end for many, savings start
to dwindle and other household bills rise, it is likely that the
next few months will continue to be challenging as the consumer
tank empties. Much hinges on whether soaring food inflation
can be brought under control enough to allow consumers to
comfortably start spending again on non-essential items.
“Retailers will be hoping that the Coronation, coupled with a
month full of bank holidays and inflation levels starting to head
in the right direction, will boost consumer confidence
significantly enough to start to see real, profitable growth.”
Food & Drink sector performance | Susan Barratt, CEO
| IGD
“Food and drink sales in April continued the same trajectory seen
in recent months; volume sales were negative and value sales were
positive, driven by ongoing inflation. In response, retailers
have been stepping up their support to shoppers, with further
high-profile innovation and investment in loyalty schemes in
April, providing access to better prices.
“Despite the continued doom and gloom, IGD’s Shopper Confidence
Index improved a little in April. Trust in the food and consumer
goods industry saw a notable improvement, especially around
availability, with 65% trusting the industry to maintain good
availability compared to 58% the previous month. Despite rising
costs, our data shows shoppers continue to prioritise health and
sustainability. Some 87% of shoppers say they are trying to eat
more healthily (88% April ‘22), and 79% claiming the impact on
the environment was important to them when choosing what food or
grocery product to buy (80% April ‘22).”
