UK Retail Sales Plummet as Soaring Inflation Crushes Consumer Confidence | Independent Analysis
UK Retail Sales Crash Amid Soaring Inflation

New figures from the British Retail Consortium (BRC) have painted a stark picture of the UK's high street, revealing a significant contraction in consumer spending as the nation grapples with a severe cost-of-living crisis.

According to the BRC-KPMG retail sales monitor, like-for-like sales growth turned negative, falling to -1.2% in the four weeks to April 27th. This sharp decline underscores the immense pressure household budgets are under from persistent inflation.

Food Inflation Bites Hard

The data highlights a worrying trend: while overall sales value saw a meagre increase of 3.1%, this was entirely driven by skyrocketing food prices. Once inflation is accounted for, the volume of goods sold has fallen dramatically.

"Whilst overall sales were up, this was almost entirely thanks to food inflation and the Easter holidays," the report stated. Consumers are increasingly prioritising essential items, with non-food sales, particularly for big-ticket items like furniture and electronics, suffering a substantial drop.

A Nation Cutting Back

Helen Dickinson OBE, Chief Executive of the BRC, issued a sobering analysis: "While consumers are willing to spend on special occasions and gifts, they are much more cautious than last year... many households are cutting back on non-essential purchases."

This newfound caution is a direct response to the highest inflation rates in decades, which have eroded disposable income and forced families to make difficult choices about their spending priorities.

Pressure on the Bank of England

This retail slump presents a fresh challenge for the Bank of England's Monetary Policy Committee as it meets this week to decide on interest rates. The figures suggest previous rate hikes are successfully dampening demand, a key tool in fighting inflation.

However, the data also reveals the painful real-world impact of these economic policies. With consumer confidence waning and sales volumes down, the UK's retail sector is bracing for a prolonged period of challenging trading conditions.