After retail sales were hit by unexpectedly deep snowfall in March, many were hoping that last month would signal the start of a more positive spring/summer season than has been seen for quite some time on the high street. Unfortunately, figures released today show just how misguided that hope was, with food sales in particular suffering from consumer apathy during April.
According to the Office for National Statistics (ONS) total sales in April fell by 1.3 per cent when compared to March, with retail sales volumes only rising by 0.5 per cent since the same period last year. This is much lower than industry experts forecast, and a blow for those eagerly anticipating substantial recovery in the early months of this year.
It is believed that bad weather once again played a role in this disappointing performance, with retailers reporting poor sales of seasonal stock put on display during the brief days of sunshine the UK experienced earlier in the month. Food also experienced a disastrous plunge in sales, with the 4.1 per cent slide since March being the largest monthly fall in two years.
The ONS points out that internet shopping remained popular, so it is not a matter of a contraction in consumer confidence – rather, it is an aversion to venturing out in poor weather that has turned people away from the high street.
It continued; “Feedback from large food store retailers suggested that the cold weather continued to impact on sales.
“In particular, the weather hindered sales within their spring and summer ranges.
“The overall proportion of non-seasonally adjusted online sales remained high at 10 per cent, reflecting feedback from large retailers, which suggested that during the continued cold weather consumers purchased from their online sites rather than in-store.”
Unfortunately, while the fact that consumers continue spending online may be good for retailers with digital platforms, the bad weather has begun to take its toll on shop vacancy rates. Figures released by the British Retail Consortium (BRC) Footfall and Vacancies Monitor show that town centre vacancy rates rocketed to 11.9 per cent in April – the highest recorded rate since the monitor was established in 2011.
Yet, confusingly, footfall actually rose in April, completely contradicting the falling retail sales totals recorded by the ONS. High street footfall climbed by 3.4 per cent, with out of town retail parks enjoying a lower boost of 0.3 per cent. Only shopping centres struggled to attract consumers, with the 3 per cent drop across the month ensuring the category recorded its lowest footfall of the year so far.
Helen Dickinson, director general of the BRC, believes that retailers require more support from local councils in order to attract consumers.
She says; “With high streets topping the agenda for many now, there’s a real opportunity here to seize the moment and stem the tide of further closures.
“Comparatively small steps to tackle deep-rooted issues such as parking, accessibility and rising business costs could make a huge difference to the health of town centres.”
Why do you think footfall continues to rise without retail sales figures reflecting the growing number of consumers visiting high street stores?
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