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BRC insights:

Sunniest April on record drives strongest retail growth in months

The British Retail Consortium (BRC) has welcomed a surge in UK retail sales for April, attributing the growth to a combination of warm weather and Easter celebrations. According to the latest figures from the Office for National Statistics (ONS), retail sales rose by 6.2% in value and 5.3% in volume – the sharpest increase since August 2023.

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Kris Hamer, Director of Insight at the BRC, commented:
'April retail sales saw the highest growth since August 2023 thanks to Easter and the sunniest April on record. With the first taste of summer, consumer spending was up across the board, with sales of food and drink performing particularly well as people hosted Easter gatherings, barbecues, and picnics. Sales of clothing and footwear were also boosted as consumers refreshed their summer wardrobes for the unseasonally warm weather.'

The data reveals that seasonal weather can act as a key catalyst for consumer confidence and spending, with strong demand for food, drink, and fashion driving the upturn. Retailers across the country benefited from the Easter holidays coinciding with unusually warm and sunny conditions, encouraging outdoor social gatherings and wardrobe updates.

However, the BRC has issued a stark warning that this positive momentum could be short-lived, as April also marked the beginning of significant cost increases for retailers.

Hamer cautioned:
'Darker days are coming as April brought an additional £5bn in costs to retailers from increases in Employer National Insurance Contributions and NLW. This is set to increase to £7bn once the new packaging tax is introduced later this year. On top of this, proposed changes to business rates could see 4,000 shops facing higher costs, putting local jobs and businesses at risk across the country. If the Government wants to protect our high streets, it must ensure no shop pays more under the reforms.'

The BRC is urging policymakers to rethink the proposed business rates reform, highlighting the potential threat to thousands of shops, jobs, and communities across the UK. With economic uncertainty and operating costs continuing to rise, the retail sector remains cautious about the long-term outlook.

As retailers prepare for the second half of the year, the industry will be watching closely to see whether favourable weather and consumer confidence can offset the growing financial pressures facing the high street.

More information:
British retail Consortium (BRC)
info@brc.org.uk
www.brc.org.uk

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