Consumers have \u201cput the brakes\u201d on their shopping habits due to the soaring cost of living, according to new figures.<\/p>\n
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The latest BRC-KPMG retail sales monitor revealed that sales dipped in April after a sharp downturn in consumer confidence.<\/strong><\/p>\n Separate figures from Barclaycard showed that credit card spending on retail and eating out slowed last month as people tightened their belts.<\/p>\n British Retail Consortium (BRC)\u00a0CEO Helen Dickinson, said: \u201cThe rising cost of living has crushed consumer confidence and put the brakes on consumer spending.\u201d<\/p>\n The data from the BRC and KPMG reported that total sales fell 0.3% in April \u2013 the first decline in 15 months.<\/strong><\/p>\n On a like-for-like basis, UK retail sales dropped by 1.7%<\/strong> as shoppers reduced their spending on big ticket items.<\/p>\n Dickinson added: \u201cSales growth has been slowing since January, though the real extent of this decline has been masked by rising inflation.<\/p>\n \u201cBig ticket items have been hit hardest as consumers reined in spending on furniture, electricals and other homeware,<\/strong> compounded by delays on goods coming from China.<\/p>\n \u201cMeanwhile, thanks to the April sunshine, garden goods and fashion saw stronger sales<\/strong>, particularly occasion-wear as consumers prepared for summer and this year\u2019s wedding season.\u201d<\/p>\n Non-food sales increased by 6.9% over the three months to April, compared with the same period last year, driven by higher inflation.<\/p>\n Total food sales for the three-month period declined by 1.3%.<\/p>\n Paul Martin, UK head of retail at KPMG, said: \u201cWith interest rates and inflation rising and the Bank of England warning of a possible recession, the squeeze on disposable household income is starting to have an impact on the high street.<\/strong><\/p>\n \u201cAgainst a backdrop of falling consumer confidence, the retail sector has a bumpy time ahead as they face spiralling cost pressures from all directions.\u201d<\/p>\n Figures from Barclaycard showed that consumer card spending increased by 18.1% in April,<\/strong> compared with pre-pandemic figures from the same month in 2019.<\/p>\n The data also highlighted that spending on essential items increased by 17.4%,<\/strong> although this represented a slowdown from 18.1% in March due to reduced fuel spending.<\/p>\n Despite the challenging economic backdrop, spending on hotels, resorts and accommodation rose 16.6% compared with three years ago, the category\u2019s highest growth since September last year.<\/p>\n Takeaways, nights out and subscriptions all had smaller increases than in March as rising prices led to changes in consumer behaviour.<\/p>\n Jose Carvalho, head of consumer products at Barclaycard, said: \u201cThe impact of rising living costs on consumer spending is starting to show,<\/strong> with a number of categories \u2013 including subscriptions, takeaways, and bars, pubs and clubs \u2013 seeing less growth than in March as Brits begin to feel the pinch.<\/p>\n \u201cHowever, the improvements seen by airlines and travel agents are particularly positive, and hopefully point to a recovery in spending on international travel later this year.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":" […]<\/p>\n","protected":false},"author":68,"featured_media":181826,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[10585,20824,6,10494,20826],"tags":[12427,10520,17270,10519,9879,11408,10590,12061],"acf":[],"yoast_head":"\n