Warm spring gives some sectors a lift
Published: 01 May, 2007
UK retail sales were up 2.4 per cent on a like-for-like basis, compared with April 2006, although the three-month trend rate of growth slipped to 3.3 per cent from 3.5 per cent in March, for like-for-like sales, and to 5.5 per cent from 5.7 per cent for total sales, reflecting the growth of retail space.
Clothing and footwear showed excellent growth in the warm sunny weather, which also boosted DIY, gardening and outdoor leisure, especially over the hot Easter weekend. Homewares, especially big-ticket, suffered as the weather turned shoppers' minds to outdoors rather than indoors.
BRC director general Kevin Hawkins said: "This is a good result, helped by the exceptionally warm and dry weather which prevailed through most of the month. Predictably, some categories did better than others, although there was a general falling-off in sales growth towards the end of the month. Now that Easter distortions are out of the way, we should get a clearer reading of the real level of sales growth as May progresses."
And Helen Dickinson, head of retail at KPMG added: "The continuation of the warm weather encouraged women out to buy this month, with footwear in particular being the best performing sector. However, despite April's Easter break, home-related sectors still found the going tough. All in all, the results for April were below the trend of the last quarter and could represent the beginning of a lower growth phase as the comparatives become tougher and the outlook less favourable."
Looking at the individual retail sectors, Joscelyne Hynard, senior analyst in the BRC's business information team, said that food and drink sales growth slowed after a good March. Easter gave its usual boost to confectionery but the warm weather slowed chocolate sales after Easter, while also driving sales of salads and cold meats, barbecue foods, soft fruit and beers, wines and soft drinks. Ice cream also had an early start and fresh produce was often preferred to frozen foods.
In clothing, the warm sunny weather drove sales growth to its strongest since last October, with particularly good gains in womenswear. Dresses, jeans, vests, casual tops and trousers, as well as the more formal crops and city shorts, did well. Skirts, knitwear and formal tailoring were broadly flat. Both top-end designer and value ranges showed good gains. For women, men and children, there were early sales of holiday and swimwear and sunglasses.
Footwear sales growth was the best since May 2004. Women's and children's showed excellent growth but men's, which had enjoyed a better start to this year, was only just up on a year ago. The warm sunny weather favoured casuals rather than formals.
Electricals and electronics saw a slightly slower month as in the sunny weather shoppers concentrated on clothing and outdoor rather than indoor products. The warm weather did help refrigeration and cooling, but other white goods were generally flat and heating/drying products suffered.
However, the fine weather gave an excellent boost to outdoor DIY and gardening, especially over the Easter weekend. All areas of gardening benefited: tools, machinery, plants, gardencare and supplies, together with landscaping, decking and paving.
Home accessories and house textiles both slowed markedly as the sun turned shoppers' thoughts to outdoors rather than in. Sales were lower than a year ago, the weakest since July 2004, though against a good April 2006. However, outdoor living, picnicware and barbecues sold well.
Overall sales of furniture and carpets dropped back below year-earlier levels, after two months of flattish sales, but were not as poor as in late 2006. Beds, bedroom and lounge furniture slowed but fitted kitchens and bathrooms were steady. Garden furniture enjoyed an excellent boost from the clement weather, especially over Easter.
Toiletries and cosmetics growth strengthened further but the year-on-year gain remained below the second-half 2006 average. Suncare did well and hayfever remedies began to take over from cough and cold medicines. Fragrances and cosmetics sold well, helped by widespread promotions, with premium ranges remaining strong.
In leisure goods, home entertainments were mixed, amid strong competition and, for DVDs and computer games, against strong releases last year. Downloads continued to affect music sales. Book sales slowed in the warm weather to show a marginal decline, but outdoor toys, camping and sports equipment all benefited from the early spring.
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=== BRC/KPMG Retail sales monitor UK - April 2007 ===
Year-on-year like-for-like (April 2007 v April 2006) UP +3.3 per cent
Year-on-year total sales (April 2007 v April 2006) UP +2.4 per cent
