Economic news
24.05.2024

UK retail sales declined sharply in April

Data published by the Office for National Statistics (ONS) showed that retail sales fell 2.3% after falling 0.2% in March (revised from 0.0%). This was the sharpest decline since December 2023. Economists had expected a 0.4% decrease. For the three-month period (through April), sales volumes rose by 0.7% when compared with the previous three months and fell by 0.8% when compared with the three months to April 2023. Meanwhile, in April, retail sales excluding fuel fell by 2.0%, accelerating sharply compared to March (-0.6%, revised from -0.3%). Consensus estimates suggested a decrease of 0.6%.

The data also showed that, in annual terms, retail sales decreased by 2.7% in April, offsetting the March increase (+0.4%, revised from +0.8%). Economists had expected a 0.2% decrease.

The ONS said that automotive fuel sales volumes fell by 4.9% m/m in April, recording the sharpest decline since October 2021. Non-food stores sales volumes (the total of department, clothing, household and other non-food stores) fell by 4.1% in April. This was the joint largest fall (shared with December 2023) since January 2021. Within non-food, falls were strongest within clothing retailers, sports equipment, games and toys stores, and furniture stores, with retailers reporting poor weather and low footfall as the main reasons. Food stores sales volumes fell by 0.8%, mainly because of supermarkets. The data also showed the amount spent online, known as online spending values, fell by 1.2% m/m and 1.5% per annum. The proportion of online sales was 26.5% compared to 26.2% in March (revised from 25.9%).

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