March saw a rise in sales in retail commercial properties, mainly helped by the sunny weather. However, as this is Britain, the weather didn’t last and the heavens opened, which saw April 2012 being the wettest month since records began – even though a hosepipe ban is still in place in some parts of the country!
As such, many people chose to avoid the high street and the wet weather that came with it. This resulted in like-for-like sales down by 3.3 per cent when compared to April 2011, according to British Retail Consortium (BRC).
The worst hit products in April were clothing and footwear, whereas food sales were down but still strong.
Stephen Robertson, Director General at the BRC, said: “The wettest April since records began has put a dampener on retailers’ fortunes. Consumer interest in summer fashions and outdoor products was washed away by constant downpours.
“Sales held up better for food retailers but customers reverted to winter eating habits, with joints of meat and soups back on shopping lists.”
However, he went onto say that sales for this April would have struggled to beat the previous year, partially due to the changing Easter times. Stephen stated: “It would have been difficult for this April to out-perform April 2011 even with favourable weather, but these numbers are still disappointing. The long Easter weekend was a peak time for many retailers but its position earlier in the month shifted some Easter shopping into March.
“In addition, April last year was boosted by the Royal Wedding and the accompanying extra day-off for people to shop or celebrate. Retailers are keeping everything crossed that a 2012 feel-good factor from this summer’s events kicks in soon.”
The poor sales performance for April also coincides with the announcement that the UK has reverted back into recession, and as such people are cautious about handing onto their money, as Stephen highlighted.
“Consumers, struggling to balance their household budgets, remain reluctant to spend unless they really have to and the weakening economy is likely to mean people are even more cautious about their finances.”
Helen Dickinson, Head of Retail at KPMG is pessimistic, claiming that May will not get any better for retail commercial properties. She said: “While May will certainly be brighter than April, the health of the retail sector continues on a downward trajectory.”
Do you agree with Helen that the retail sector is on a downward spiral, or do you think sales will pick up as the months get warmer?
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