Easter sales boost March figures but April could suffer as a result, says BRC
Published: 13 April, 2010
UK retail sales values rose 4.4 per cent on a like-for-like basis from March 2009, when sales had dropped 1.2 per cent. Good Friday and Easter Saturday fell in the March trading period this year but in last year fell in April, which boosted the year-on-year comparison. On a total basis, sales rose 6.6 per cent against only 0.6 per cent growth in March 2009.
Food sales were boosted by Easter purchasing, again falling in March of this year but April last year. For non-food, consumer caution in the face of economic and political uncertainty favoured essentials and replacements over discretionary items. Clothing and footwear slowed but homewares improved, helped by mid-season sales and promotions.
Non-food non-store sales (internet, mail-order and phone sales) in March were 15.9 per cent higher than a year ago compared with 15.5 per cent in February. Sales were mixed and often discount and promotion driven.
Stephen Robertson, director general of the British Retail Consortium, said: “These are strong figures – the best total sales growth since April 2006, but they would have been only half as good without the distorting effect of Easter.
“Food sales received a big boost from Easter falling a week earlier than last year, with the first half of the Bank Holiday weekend reflected in these March results. The overall figures were also helped by the comparison with last year’s very weak performance.
“In food and drink, this was the most intense March for eight years for promotional activity. Non-food is also a competitive battleground as retailers fight it out to entice customers being put off spending by pre-election uncertainty.”
Helen Dickinson, head of retail at KPMG, said: "The timing of the majority of Easter spending, falling into the March 2010 period but in April last year, has boosted this month’s figures and makes year-on-year comparisons difficult. Without this uplift a gloomier picture would have emerged – concern about the future continues to weigh on consumers’ minds and the outlook for spending remains uncertain.
"Retailers are fighting hard to encourage shoppers and offer value, which has slowed the rise in shop prices over the month, but how long they will be able to sustain this, given the pressure on margins, is debatable. Women’s clothing and footwear were the worst performers due to the ongoing cold spell and comparisons with a sunny start to spring in 2009."
