Sun And Easter Boost UK April 2009 Sale

• UK retail sales values rose 4.6 percent on a like-for-like basis and rose 6.3 percent on a total basis, from April 2008, when sales were very weak in the cold wet weather after Easter fell in March.
• Easter falling in April this year but in March last year, together with warm sun this April but cold and rain last April, make comparisons difficult.
• Easter and the warmer weather boosted both food and non-food sales.
  
  

Joanne Denney-Finch, Chief Executive, IGD, said:

“Food and drink sales for the last three months were 5.3 percent higher on a like-for-like basis than the same period a year ago. Easter gave April a big boost and encouragingly the second half of the month also performed well – thanks to some better spring weather. “While many shoppers are delaying the purchase of big-ticket items, nearly three-quarters told IGD in a recent poll that they are ‘carrying on as normal’ with their grocery shopping - although of course they are seeking out the best deals and promotions, shopping around and scrutinising value.”

Helen Dickinson, Head of Retail, KPMG, said:

“Although, on the face it, the results for April show a healthy year-on-year uplift, it would be dangerous to see the figures as a sure sign that consumer confidence has returned just yet. The month in which Easter fell (April this year and March last year) flatters this year’s figures somewhat. The good weather conditions and the timing of the school holidays, which has driven some particularly strong results for children’s clothing and footwear, also buoyed this month’s performance. What they do show is that consumers are remaining resilient to the prospects presented by a gloomy economic outlook and, for the moment at least, are not making a step change in reducing their spending.”

Stephen Robertson, Director General,
British Retail Consortium, said:

“The best sales growth for three years is good news but let’s be cautious. A sunny Easter that fell in April this year is the key reason why overall sales are up compared with last year when Easter was in March and miserable. Sales of garden goods, outdoor leisure, clothing and food did well but other non-food sectors missed out on the seasonal boost and the total spent on food rose less than food inflation, indicating the amount sold dropped.

“Following a tough winter, there’s some pent up demand but there’s no reason to think customers suddenly feel flush or eager to spend. With unemployment set to grow through the rest of the year, mounting jobs worries will hold back spending for some time. It would be great if the historically weak performance of the last twelve months was behind us but we shouldn’t celebrate yet.”

April 2009 London Retail Sales Lead Slips

• Retail sales in central London in April were 5.4 percent higher than a year ago, on a like-for-like basis, stronger than the 4.6 percent increase in the UK as whole.
• Easter falling in April this year but in March last year, together with warm sun this April but cold and rain last April, make comparisons difficult.
• Retail footfall in April held up well as the warmer sunny weather brought shoppers out. Shopper numbers were up on a year ago, in line with those in the UKUK as a whole.
• The favourable exchange rate continued to attract overseas visitors, especially those from Western Europe, but the effect of sterling’s weakness on USUS visitors was less marked.
• Warmer sunny weather, especially at Easter, helped clothing, footwear and outdoor leisure but homewares and furniture sales remained generally tough, especially for larger purchases.
  
  

Stephen Robertson, Director General,
British Retail Consortium, said:

"Sunshine and Easter didn't give London sales growth the big boost they provided for the rest of the UK but that's because the London figures were already well up on other parts of the country.

"Overall, London's customers are proving more resilient to recession. Since the start of the year, London retail sales have consistently outperformed the country as a whole with average growth for the year so far of 5.7 percent compared with almost no growth for the whole UK and London continued that sort of performance into April.

"It was another month of solid sales results for London with other parts of the UK playing catch-up."

Helen Dickinson, Head of Retail, KPMG, said:

“Spending in the capital continues to hold up - in large part due to overseas visitors continuing to take advantage of favourable exchange rates and greater numbers of UK visitors holidaying at home. So, good news for retailers in London, who continue to outperform the rest of the UK. However, given the timing of Easter- March in 2008 and April in 2009 - we might have expected a larger uplift in April, particularly given the trend for higher sales over recent months. The summer also looks to be more challenging as the figures were strong from May to August in 2008, so will be much harder to beat this year.”

The April 2009 Monitor covers the four weeks 5 April – 2 May 2009 and provides the most up-to-date reflection of recent retail performance in London.

The BRC-KPMG Retail Sales Monitor measures changes in the actual value (including VAT) of retail sales from a sample of retailers. The Monitor measures the value of spending and hence does not adjust for price changes. If prices are rising, sales volumes will increase by less than sales values. In times of price deflation, sales volumes will increase by more than sales values. Retailers report the value of their sales for the current period and the equivalent period a year ago. These figures are reported both in total and on a ‘like-for-like’ basis.

The data is collected and collated for the British Retail Consortium by KPMG. Food data is provided by IGD.

The British Retail Consortium is the lead trade association representing the whole range of retailers, from the large multiples and department stores through to independents, selling a wide selection of products through centre of town, out of town, rural and virtual stores.