Retail sales in the U.K. witnessed their lowest levels since 2020 when the country was going through its first COVID-19 lockdown. However, the timing of the Easter holidays could be to blame, a recent survey revealed.
The Confederation of British Industry‘s (CBI) monthly retail sales gauge, which measures volumes compared to a year ago, fell from +2 in March to -44 in April.
Economists attributed the sharp decline in U.K. retail sales to the earlier timing of the Easter holidays this year. While experts urged caution in interpreting April’s sales figures, they acknowledged the prevailing challenging conditions in the retail sector. While April’s sales decline may be due to Easter’s timing, retailers remain cautious about the months ahead.
In addition to the decline in retail sales, orders placed with suppliers also experienced a significant downturn, signaling broader challenges within the supply chain. The drying up of supplier orders adds to the existing pressures faced by retailers, exacerbating concerns about the outlook for the sector.
Read: U.S. economy likely to grow 2.4 percent in Q1 as delayed rate cuts signal inflation surge
In March, U.K. sales volumes were 0.8 percent higher, yet sales were still 1.2 percent below the pre-pandemic levels of February 2020. The ONS also revealed that retail sales volumes experienced a 1.9 percent increase in the three months leading up to March 2024, compared to the fourth quarter of 2023, recovering from low sales during the Christmas period.
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