As expected, retail sales soared last month as pent-up demand was released when non-essential shops reopened.
Official data from the Office for National Statistics (ONS) shows retail sales volumes in April jumped 9.2% on the previous month. The figure was 42.4% higher than the same period in 2020, which was affected by the first national lockdown when the tightest restrictions were in place.
Non-food stores provided the largest contribution to the monthly growth with sales of clothing soaring by 69.4% compared with March. Sales in other non-food stores grew 25.3%.
As physical stores re-opened, the total proportion of sales made online decreased to 30.0% in April, down from 34.7% the month before.
Aled Jones, head of retail at Lloyds Bank, said: “Fashion retailers were the ultimate beneficiaries of beer gardens reopening and the ‘rule of six’ night out returning.”
Silvia Rindone, EY UK & Ireland retail leader, highlighted that April had seen “significant pent-up consumer demand”, adding: “With consumers keen to return to the in-store shopping experience and indulge in retail therapy, we saw a sales boost across most categories.”
Separate data released today also showed consumer confidence has jumped in May as people feel more optimistic about the outlook for the UK economy and their personal finances over the next year.
GfK’s Consumer Confidence Index increased by six points to -9 this month, back to its pre-pandemic level.
The index measuring expectations for the general economic situation over the coming 12 months improved by 15 points to 4, which is 58 points higher than in May 2020.
Meanwhile, the major purchase index rose by five points to -7 and the index for the forecast for personal finances over the next year remained the same as April at 10.
Joe Staton, client strategy director GfK, said: “These findings reflect April’s ‘feelgood’ re-opening of outdoor pubs, shops, gyms and hairdressers combined with continuing vaccination success, all this before the possibility of green-list vacation opportunities in May. In addition, we’re seeing a healthy five-point uptick in the major purchase index, with more consumers seizing the opportunity to splash the ‘accidental savings’ that some have collected.
“Now really is a good time to buy. Growing confidence is fuelling the economy and only a reversal to lockdown can dampen this solid momentum.”
NAM Implications:
- The real issue is how your sales compared by category and channel…
- …in order to decide whether ‘missing a trick’…
- …was down to you or your customer.
- Best keep in mind that 14 months was a long time to embed new shopping behaviours…
- …that will not necessarily be reversed in response to Whitehall approval.
