- Retail sales fell by 1.3% in April – the largest drop since May last year
- Motorists cut back on fuel purchases as prices surged, with sales falling by the most since 2020
- But sales were up 0.5% in the three months to April as new tech and cosmetics tempted consumers, despite poor weather denting clothing sales
Danni Hewson, AJ Bell head of financial analysis, comments on the latest retail sales figures:
“The soaring price at the pump has put pressure on households still fighting back from their last brush with scorching inflation.
“Initially, motorists rushed to fill up as the impact of the Iran war sent fuel prices higher, but as it became clear this was not going to be a short-lived spike, people have regulated their behaviour. Non-essential journeys have been pared back as consumers once again think hard about how they’re going to spend every penny.
“April delivered plenty of showers early in the month, but the unpredictability of the weather meant people were baffled about wardrobe choices and spring collections went unpurchased.
“The release of new tech like Apple’s more affordable version of the iPhone 17, along with its lower-cost MacBook, did tempt people to splash out and the lipstick economy continued to do well. Little luxuries make people feel better about themselves and are easily justified, even when budgets are tight.
“The continued wellness trend and AI tools which help promote new products to an amenable audience have also helped boost toiletry and cosmetic sales for the fourth month in a row.
“But the high street – real or virtual – is a tough place right now. With prices set to rise over the rest of the year people’s ability to spend will be tested, especially if the kind of wage hikes experienced during the last cost of living crisis are tempered by a subdued labour market.”
