Retail Sales Take a Easier Beat After March’s Slump
Retailers have been feeling down in the dumps, but at least they’re not crashing so hard as they did in March. The latest CBI Distributive Trades Survey says sales fell in the year‑to‑April, yet the decline is slower than the brutal drop we saw back in February.
Key Numbers in a Nutshell
- Annual retail sales: down -8% in the year to April (vs. -41% in March)
- Forecast for May: expected to drop faster, around -33%
- Seasonal slump still in full swing: April viewed as “poor” but a touch better than March’s -36%
- Online sales: held steady, barely -1% for the year to April, with a slight uptick +2% predicted for May
- Wholesale: one of the sharpest dips since September 2020, down -33% for April (vs. -29% in March)
- Total distribution (retail + wholesale + motor trades): contracted -26% for the year to April (vs. -32% in March) with a steady decline expected in May -29%
Why the Numbers Look So Grim
The CBI’s Principal Economist, Martin Sartorius, says the dip is linked to a mix of factors: a heavy Autumn Budget load, persistent weak consumer mood, and global uncertainties. “Even though we’re not dropping as hard as before, optimism is still low,” he notes.
What Wholesalers Are Saying
Wholesale sees a tough runway ahead. “It’s been one of the steepest falls in four years,” Sartorius points out. “Without a clear turnaround, firms in distribution want the government to pull all the cards that could lift consumer and business confidence.”
The Government’s Playbook
- Ease training investment by revising the Apprenticeship Levy
- Leverage the upcoming Spending Review to drive tech adoption
- Keep a focus on free and fair trade to seed growth
In short, the retail world is riding a rollercoaster that’s not un‑tilted yet, but hope’s not lost in the rearview mirror. We’ll keep an eye on how a more upbeat boot‑on‑the‑gas from the government could give the sector a lift.
