UK retail industry growth at highest since 2004

The UK retail industry registered the highest level of growth since 2004 in April, figures from the Office for National Statistics (ONS) revealed.

The quantity bought in the retail industry was up 6.9 per cent as against April 2013 and by 1.3 per cent as compared with March 2014. The industry had continued a pattern of year-on-year growth since early 2013.

Apart from petrol stations, all stores saw increased sales volumes year-on-year.

The amount spent in the retail industry in April 2014 was up by 6.2 per cent as against April 2013 and by 0.6 per cent against March 2014. 

According to non-seasonally adjusted data, the average weekly spend in the retail industry in April 2014 stood at £7.0 billion as against £6.5 billion in April 2013 and £6.8 billion in March 2014.

After a weak March, the amount spent online was up 13.3 per cent in April 2014 as against April 2013 and by 2.6 per cent as compared with March 2014.

According to David McCorquodale, UK head of retail at business auditors KPMG, the ONS statistics showed that the effects of the economic recovery were feeding through to the retail sector, www.am-online.com reported.

He said, retailers delivered a solid sales performance in April, helped by Easter sales and the good weather.

McCorquodale added that this was a sentiment-led recovery for the retail sector. He said while wage growth was lending a helping hand, ultimately consumers needed to feel confident enough to spend their hard earned cash, especially when it came to non-essential big ticket items.

He said if the good news kept on coming and the economic recovery remained on track, this would be a good year for the retail sector.

British retail sales were helped by discounting, good weather coupled with Easter spending aided by stronger-than-expected growth in British retail sales in April, Retail Business Review reported.

The figures showed that food sales made a significant contribution to the overall figure, which were aided by late Easter holiday and seasonal promotions.

They were 6.3 per cent  higher in April against a year earlier, and 3.6 per cent up on March. Non-food store sales fell 0.4 per cent in contrast.

According to the agency, retail sales during the three months to April reported highest growth since March 2004 and came in as the 14th consecutive month of three-month-on-three month growth in the quantity bought.

Sales rose 1.8 per cent as against the three months to January.

According to IHS Global Insight's chief UK economist Howard Archer, elevated confidence, markedly higher employment and a much improved housing market overall were all supportive to consumer spending.