UK retailers report ‘outstanding’ growth figures as non-essential stores reopen

Following the reopening of non-essential stores on 12th April in England and Wales and continued online growth, UK retail sales enjoyed a welcome boost last month, according to research by the BRC and KPMG.

On a total basis, sales increased considerably over the period following reopening and by 7.3% across the month of April compared to April 2019. This is above the three month average growth of 6%.

Note that the BRC and KPMG are not factoring in 2020, as in their words, it was a turbulent year in which much of retail bounced between being open and closed, significantly impacting sales and the ability to make meaningful comparisons.

With a pent-up demand for the physical retail experience drawing consumers back to stores, non-food sales across stores and online increased by a quarter between March and April.

Many fashion retailers saw an uptick in sales, particularly in outerwear and knitwear, as the public braved the cold spring weather for outdoor meeting and dining with friends.

Furniture also saw a boost, with consumers once again able to try before they buy. However, this sales growth is fragile, the BRC stresses.

There is little competition for share of spending while parts of hospitality, leisure, and tourism remain restricted and inner cities and town centres continue to perform poorly as many people still work from home.

Paul Martin, UK Head of Retail at KPMG, says: “Retailers will be delighted with the way the re-opening of the high street was greeted by shoppers eager to get into stores and engage once more with physical shopping.”

“Remembering that this time last year we were in lockdown, there are some outstanding growth figures in April especially in non-food within categories such as jewellery, accessories and footwear which all registered triple digit growth.”

“Online sales continued to grow across most categories, but at a reduced rate as many consumers stepped away from their computers to head outside. This maybe has come as a surprise, although it does showcase that some changes in consumer behaviour are here to stay.”

“Conditions will remain challenging as government support tails away over the summer and interest and repayments on CBILS and bounce back loans will need to start being paid back, alongside deferred rental payments.”

He concludes: “Retailers face an interesting few month as they assess the level at which online shopping falls back and full re-opening of the hospitality sector will likely see a dilution in retail spend in favour of leisure, entertainment and hospitality.”

“Retailers will be hoping that with the increasing positive signs of the economy improving, market conditions offer scope to spark a big surge in consumer spending this summer.”