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Total like-for-like retail sales in discretionary categories including fashion, homewares and lifestyle fell by 1.6% in April compared with the same month last year, according to the latest data from BDO, marking the worst April result in a decade – excluding the pandemic.
According to the BDO High Street Sales Tracker, all three categories of discretionary spend recorded a decline in total sales for the first time since March 2018.
In-store sales performed particularly poorly, falling by 1.8% from a base 2.3% last year. Weak consumer confidence and rising living costs continue to weigh on spending, marking 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 1, 0.8% in the second week and 2.8% in the third week.
In addition, rising fuel prices continue to affect household budgets, driving up the cost of essentials such as food, fuel and energy from an already high base.
Sophie Michael, head of retail and wholesale at BDO, said: “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.”
She added: “There is no sugarcoating the outlook for retail as rising fuel prices continue to have knock-on effects across household budgets. 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.”
