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UK retail sales fall 3% as consumer uncertainty halts spending

UK retail sales fall 3% as consumer uncertainty halts spending

The BRC found that April sales declined across food and non-food categories amid rising geopolitical tensions

On this episode of Talking Shop, we are joined by Sammy Allanson, Client Partner Lead for the North of England at business change and transformation specialist Sullivan & Stanley. We break down why the North is one of the UK’s most critical retail growth engines - and why conquering it requires deep local credibility rather than superficial corporate visibility exercises.

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UK total retail sales decreased by 3% year on year in April, falling below the 12-month average growth of 1.8%.  

The figures, released by the British Retail Consortium (BRC), follow a growth of 7% in April 2025.

The BRC attributed the slump to the timing of Easter and weakened consumer confidence, noting that spending was further impacted by concerns regarding the Middle East conflict and its potential to increase the cost of living.

Food sales fell by 2.5% during the month, while non-food sales dropped by 3.3%. In-store non-food transactions saw the sharpest decline, falling 4% compared to a 5.6% increase in the same period last year.

Online non-food sales decreased by 2.3% in April. Despite this, the online penetration rate – the proportion of non-food items purchased online – rose to 37.9%, up from 37.4% in April 2025.

When combining March and April to account for the Easter calendar shift, total retail sales showed a 1.5% increase compared to the previous year. Discretionary spend on furniture and summer holidays remained low.

Retailers noted a marginal increase in sales for beauty, health, and jewellery however, whilst the BRC suggests that upcoming events, including the World Cup, may provide a temporary lift for electronics and sound systems.

Chief executive at the BRC, Helen Dickinson, said: “April’s sales fall was largely driven by the Easter shift, with food hit hardest. But weak consumer confidence also played a role as fears about the Middle East conflict driving up living costs led shoppers to rein in.

“Big-ticket purchases fell, with the recent recovery in furniture losing steam, and uncertainty around summer holidays hitting discretionary spend. With the World Cup coming, retailers hope it will provide a lift, and early signs show demand for TVs and sound systems picking up.”

She added: “Global events might be out of government’s hands, but costs imposed at home are not. Ministers must act now to curb the impact on consumers from soaring costs. That means cutting non-commodity energy charges – which include the taxes and levies that make up to two thirds of retailers’ energy bills, scrapping or reforming the triple tax on packaging, and delaying the upcoming changes to the way we measure the nutritional content of food. The time to act is now if government wants to protect consumers and support growth in the challenging few months ahead.”

UK head of consumer, retail and leisure at KPMG Linda Ellett said: “It was a disappointing April for the retail sector, even factoring in an earlier Easter shifting some spending into March. Bar marginal growth for beauty, health and jewellery, retail sales fell across all other categories.

“Consumer confidence has been further dampened by rising prices due to the Iran conflict, with consumers cautious about potential ongoing effects. As a result, the retail sector is facing a challenging start to spring/summer, but there is hope that holiday demand and the World Cup still manage to unlock spending in the weeks and months ahead.”

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