BDO High Street Sales Tracker: Worst April in a Decade

• Worst April in a decade as total like-for-like sales fell -1.6%
• Eighth consecutive month of falling sales volumes, as sales growth remains below inflation 

Total like-for-like sales in discretionary categories (fashion, homewares and lifestyle) fell by -1.6% in April compared to the same month last year, according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO. This marks the worst April results in a decade excluding the COVID-19 pandemic when stores were shut. 

This is a particularly bleak result given that all three categories of discretionary spend recorded a decline in total sales for the first time since March 2018 aside from during the COVID-19 pandemic. 

In-store sales performed particularly badly, falling by -1.8% from a base of +2.3% last year, as weak consumer confidence and rising living costs continued to weigh heavily on spending. This is the eighth consecutive month in which sales growth has failed to keep pace with inflation. 

Early April sunshine failed to translate into stronger footfall, which declined by -1.8% in week one, -0.8% in week two and -2.8% in week three.  

Sophie Michael, Head of Retail and Wholesale at BDO, commented:

“It’s hard to overstate just how difficult April has been for retailers. April is traditionally a positive month for the sector, as new spring and summer ranges arrive in store and consumer demand typically strengthens. Against that backdrop, these figures are particularly concerning. 

“Excluding the COVID‑19 lockdown period, the last time April delivered negative like‑for‑like growth was in 2016 when severe weather disrupted trading nationwide as snow fell across the UK. 

“Despite periods of warm, sunny weather this year, consumer behaviour remains firmly restrained. There is no sugarcoating the outlook for retail as rising fuel prices continue to have knock‑on effects across household budgets, driving up the cost of essentials such as food, fuel and energy from an already high base. 

“As households prioritise day‑to‑day spending, discretionary categories are seeing a sustained pullback and are therefore disproportionately impacted, whether in fashion, homewares or lifestyle. There is little evidence at present to suggest a meaningful improvement in the near term, and retailers should continue to prepare for a challenging trading environment in the months ahead.”

Source : BDO 

Image : Yackers1 / iStock / 1356244892

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