Danni Hewson, financial analyst at AJ Bell, comments on April 2021 retail sales data from the Office for National Statistics:
“The easing of lockdown has been just the excuse the Great British public needed to head out and buy a new outfit or two. The latest retail sales figures show the lifting of restrictions on non-essential retail has been just the tonic for ailing businesses and that the much-discussed pent up demand is real. Clothing sales surged by 69.4% and non-clothing 25.3% in April compared to the previous month. Petrol sales were also given a boost as workers began to drift back into offices and the opportunity for socialising and indulging was presented. So far so good for physical retail, and online sales were down 5.6% when compared with the previous month.
“But a more accurate picture emerges when we compare this month’s sales figures with those of April 2019. In that period online retailers have enjoyed the largest growth, up a whopping 56% and fuel sales are 13.3% down compared with two years ago, demonstrating that homeworking is still a big part of our working lives. Overall, retail sales were considerably above their pre-pandemic levels (10.6%) but novelty and savings will undoubtedly have played a part in this month’s rise and this trajectory is unlikely to continue as consumers get more opportunities to spend their cash elsewhere.
“That’s something food stores understand all too well; this was the only sector to experience a decline in sales as customers found other ways to treat themselves. Although sales are still up on pre-pandemic levels it’s a trend that will be closely watched by supermarkets which also found clothing sales were massively impacted now that they’re not the only physical game in town.
“The figures will be widely welcomed but this is a period of transition. The playing field has tilted and it’s only once the dust settles that we will really see where it’s levelled out.”
