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The Guardian - UK
The Guardian - UK
Business
Sarah Butler

Wet weather woes cause damp start to spring for retailers and restaurants

Shoppers with umbrellas in Gravesend, Kent
‘Dismal weather and disappointing sales led to a depressing start to spring for retailers.’ Photograph: Fraser Gray/Rex/Shutterstock

Cold wet weather and caution about spending amid high interest rates and energy bills have delivered a dismal start to spring for retailers and restaurants, the latest industry figures show.

Sales were virtually flat across March and April against the same period a year ago, according to the latest figures from the British Retail Consortium (BRC) trade body and advisory firm KPMG. That was despite prices continuing to rise with inflation, suggesting a drop in the volume of items sold over the important Easter period.

In the four weeks to the end of April, sales were down by 4%, but this number was partly affected by Easter falling early this year at the end of March. Nonfood sales were the hardest hit, down almost 3% with in-store and online orders down.

Helen Dickinson, the chief executive of the BRC, said shoppers had delayed spring purchases despite retailers’ efforts to tempt them with heavy discounts: “Dismal weather and disappointing sales led to a depressing start to spring for retailers, even accounting for the change in timing of Easter.”

She said a dull, wet April dampened sales growth for clothing and footwear, especially outdoor sportswear, as well as DIY items and garden furniture. Discounts on computers did boost sales as many sought to upgrade devices they had bought a few years ago during the pandemic surge in home technology sales for working and studying from home.

The number of shoppers visiting high streets and other retail destinations slumped more than 7% in April, far worse than the 1.3% fall recorded in March, because of poor weather and the shift in the timing of Easter, according to separate data out last week from the BRC and monitoring firm Sensormatic Solutions.

“Many retailers are hoping for brighter sales over the summer months as social events ramp up, and consumer confidence could improve with a potential cut in interest rates,” Dickinson said.

The difficulties for retailers came to light as Britons remained cautious about “big ticket” outlays including DIY projects and furniture, but were splashing out on days out and trips to the pub, according to the latest Barclays consumer spending report released on Tuesday.

It also found travel was being prioritised, with airline spending up by more than 6%. By contrast, clothing sales were down 2.1%, according to the lender, as spring showers deterred shoppers from visiting the high street, while restaurants had another challenging month, down 13%, a similar fall to that in February and March.

The figures emerged as 49% of consumers told Barclays they were continuing to rein in discretionary spending, with more than half of that group cutting back on takeaways and dining out.

Spending on mortgage and rental payments rose 3.6%, reversing a three-month trend in slowing housing cost inflation.

Karen Johnson, head of retail at Barclays, said businesses had been braced for a subdued start to the year but had hoped that discretionary spending would bounce back by mid-year, buoyed up by falling inflation and the prospect of better weather.

She said consumer confidence appeared to be improving but “as the summer season approaches, many retailers have adjusted their expectations, anticipating no real recovery until the autumn”.

• This article was amended on 7 May 2024. In an earlier version, a number of statistics described as being from “the latest Barclays consumer spending report” were in fact from the previous month’s report. The correct statistics have now been used.

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