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Food sales fell back, largely reflecting Easter timing. Non-food was also affected by the earlier Easter, but also by pre-election uncertainty and consumer caution, which favoured essentials and replacements over discretionary items. Clothing and footwear slowed and homewares fell back below year-earlier levels, despite some further discounts and promotions.
Non-food non-store sales (internet, mail-order and phone sales) in April were 15.9% higher than a year ago, the same as in March and in line with previous months. But more promotions were needed to secure sales.
Stephen Robertson, Director General, British Retail Consortium, said: “April's sales were down on a year ago, but that’s because of the Easter effect. This April’s trading period only included the last two days of Easter, while last year’s had the entire build-up and holiday weekend. “Both food and non-food sales growth slipped back this April because people had already done their Easter spending in the previous month. The three-month average irons out the Easter distortions. It shows total sales up 3.8 per cent this year compared with 2.2 per cent in the same three months in 2009.
“There’s no question customers are more willing to spend than 12 months ago but still nervous. People need to know how a new Government’s moves to tackle the deficit will affect their incomes and jobs. Even if the measures are tough, knowing what they are could be better than the current uncertainty.”
Helen Dickinson, Head of Retail, KPMG, said: "The timing of the majority of Easter spending, falling into last month but in April last year, has deflated this month's figures and makes year-on-year comparisons difficult. However, even taking this into account, the general malaise of the consumer is evident and looks likely to remain, for a while at least, given the uncertain political and economic environment. Due to the Spring weather earlier in the month, women's clothing and footwear picked up after a challenging March but food and anything home related were hit hard by the distorting effects of Easter. Retailers are working hard to manage their costs and stay competitive while demand remains so volatile."
Food & Drink – Joanne Denney-Finch, Chief Executive, IGD, said: "Last month, grocery retail benefited from the early Easter and therefore slower growth in April is to be expected. Low food inflation, coupled with heavy promotional activity, also affected performance. Food inflation in April 2010 was significantly lower than in April 2009, making sales growth more difficult. "Economic recovery continued in the first quarter but, with the media agenda dominated by the election and debates over economic management, shoppers remained cautious. IGD research shows that 54 per cent of shoppers expect to be more careful about their food shopping in the future. "Weeks to come may bring greater clarity for shoppers and businesses, allowing them to plan with greater confidence."
Non-Food Non-Store - Stephen Robertson, Director General, British Retail Consortium, said:"Another good month's growth, the same as March and virtually equal to the average for the last twelve months. But non-store sales are not immune to customer caution. "Sales growth held up but retailers are having to work harder to maintain it. They’re runningmore promotions and discounts, especially on big-ticket items, and sending out more email marketing and brochures to alert potential shoppers."
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