Partner Article

Retail sales fall dramatically

Retail sales fell at their largest monthly rate in more than two years last month, due to a record drop in fuel sales and a fall in clothing sales.

According to the Office of National Statistics, retail sales volumes fell 2.3% on the previous month - the biggest drop since January 2010 and more than twice as fast as has been previously forecast. It also more than reversed a revised 2% rise in March.

Compared with April 2011, sales fell 1.1%, contradicting economists’ forecasts for an annual rise of 1%.

The decline was attributed to a record drop in fuel sales following panic buying in March which meant that some petrol stations were unable to restock in time in April. A decline in clothing and footwear sales was caused by record rainfall.

The sharpest monthly decline in sales since June 2008 was felt by retailers, many of whom struggled during April.

While many felt confident about the month ahead, recent disappointing figures have created an overtly negative picture of the sector’s overall performance.

Earlier in the week marks and Spencer cut its growth forecasts, indicating that it expects consumer spending to remain weak while the Government continues to make cutbacks.

This was posted in Bdaily's Members' News section by Ruth Mitchell .