Physical stores lagged inflation in April says latest BDO tracker
April's shopping reports are starting to come in and they don't look great. That latest says that while sales rose year on year, they're still lagging inflation.
That's according to the BDO High Street Sales Tracker. It said total like-for-like discretionary sales grew by 3.7% in April, from an almost-flat base of +0.4% in April 2024. So the latest figure hasn't even managed to make up for last April's well-below-inflation sales, and is still below this year's inflation figure.
BDO also said that in-store sales in particular were worrying. They recorded below-inflation growth of 2.3% from a base of a 1.7% fall in April 2024. It added that the 'high street risks being 'hollowed out' as consumers shift shopping online'.
As this suggests, online was what drove growth last month, with a a 5.6% rise.
The report from the accountancy and business advisory firm shows that retailers continue to struggle to get consumers spending in physical stores as far as discretionary product categories are concerned.
The lifestyle and homewares sectors recorded particularly poor performances in-store. But while the warm weather during April provided a boost for fashion sales, physical stores still struggled to capitalise on this. Sales in-store grew by 5.2%, but this is against a base of -8.3% in April 2024, meaning that the category has failed to recover from this poor performance.
Sophie Michael, Head of Retail and Wholesale at BDO, said: 'While April's results may initially appear positive, it was a month boosted by warm weather and seasonal events such as Easter and school holidays, which typically help to drive consumer spending. It's clear that there is a cloud of uncertainty around economic issues such as the introduction of trade tariffs and cost increases, which has had a material knock-on effect on consumer confidence and their willingness to spend.
'When household finances are under pressure, consumers will understandably reduce their spending in discretionary categories like homewares and lifestyle and prioritise spending on experiences with family and friends.
'While online retailers are still managing to record sales growth, high street stores are really struggling to get shoppers through the door.'
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