In worrying news for retailers, the monthly sales monitor collated by the British Retail Consortium (BRC) and analysts KPMG released this week has shown UK total retail sales decreased by 3% year-on-year in April, against a growth of 7% in April 2025 - and below the 12-month average of 1.8%.
Drilling down, the figures showed food sales decreased by 2.5% year-on-year against a growth of 8.2% in April 2025. However, taking March and April together, and comparing them with the same two-month period in 2025 to account for the timing of Easter, UK total retail sales increased by 1.5% year-on-year.
In response, Helen Dickinson (left), chief executive at the BRC, 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 [spending].
“Uncertainty around summer holidays hit discretionary spend. With the World Cup coming, retailers hope it will provide a lift.
“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.”
Linda Ellett (right), UK head of consumer, retail and leisure at KPMG, added: “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.”
Finally, Sarah Bradbury (below left), CEO of the Institute of Grocery Distribution, said: “The impact of food price inflation is increasingly split by income, as lower income households are already feeling the impact of higher fuel costs and remain highly value focused, while higher income shoppers are more insulated, supported by elevated market interest rates and the upside for savings.
“Retail value growth has slowed sharply year-on-year and volumes remain fairly flat, signalling continued budget management for shoppers. News of a temporary ceasefire in the Middle East lifted shopper confidence briefly, but with broader energy market disruption likely to feed through to food inflation with a time lag, pressure is expected to build over the next few months.
“Food and drink retailers should plan for a continued trade down from shoppers, heightened promotional activity and uneven demand.”
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