UK retail sales dropped 3 per cent in April, a sharp decline from last year that marks the worst performance outside lockdowns for discretionary spending categories, according to the British Retail Consortium (BRC). The figures represent a dramatic reversal from the 7 per cent growth recorded in April 2025, when a later Easter and more resilient consumer sentiment buoyed the high street.
April sales slump deepens
Food sales bore the brunt of the downturn, falling 2.5 per cent year-on-year in April compared with growth of 8.2 per cent a year earlier. The monthly decline was also below the 12-month average growth rate of 3.5 per cent, the BRC said. The early timing of Easter – which fell in March this year rather than April – distorted the annual comparison, but even after adjusting for that shift the figures disappointed retailers. Footfall data, which measure shopper trips rather than spending, had already indicated that many consumers had all but abandoned the high street.
Helen Dickinson, chief executive of the BRC, said: “April’s sales fall was largely driven by the Easter shift, with food hit hardest. But weak consumer confidence also played a role as fears about the Middle East conflict driving up living costs led shoppers to rein in.” She noted that big-ticket purchases had fallen, with the recent recovery in furniture losing momentum and uncertainty around summer holidays depressing discretionary spending.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, described the month as “disappointing even factoring in an earlier Easter”. She said: “Bar marginal growth for beauty, health and jewellery, retail sales fell across all other categories.”
Consumer confidence battered by global pressures
The sharp decline in sales reflects a deeper malaise in consumer confidence, driven overwhelmingly by the escalating conflict in the Middle East. Retailers have already warned about the impact of the Iran war on household budgets, with food and fuel prices forced upwards. Petrol prices have risen sharply, and household gas bills are expected to increase in the coming months.
The economic fallout is now being quantified. The Organisation for Economic Co-operation and Development (OECD) has revised down its forecast for UK GDP growth in 2026 from 1.2 per cent to 0.7 per cent because of the crisis. Analysts estimate the conflict could knock half a percentage point off growth, slowing the economy to just 0.8 per cent.
The squeeze on real incomes is leading to a structural shift in household spending. Consumers, already cautious after the pandemic and subsequent cost-of-living crisis, are reallocating money towards savings and essentials, pulling back from discretionary purchases. Retail and hospitality businesses are expected to suffer the most, with retailers absorbing significant additional costs – including rising energy, shipping, production and distribution expenses – compounded by higher employer taxes, wage bills and new packaging levies.
The BRC has called on the government to ease the domestic cost burden. It has asked policymakers to delay a range of regulatory pressures, including energy policy levies and packaging taxes. The trade body is also seeking a review of the triple packaging levy, which it warns is forecast to cost retailers more than £2 billion a year. Retailers have urged ministers to follow Germany’s lead in reducing electricity costs for businesses by removing levies from bills.
World Cup offers a lifeline
Against this bleak backdrop, the retail sector is pinning its hopes on the upcoming World Cup. Dickinson said early signs pointed to a pick-up in demand for televisions and sound systems as fans prepare for the tournament. “With the World Cup coming, retailers hope it will provide a lift,” she added.
Ellett echoed that optimism, saying: “There is hope that holiday demand and the World Cup still manage to unlock spending in the weeks and months ahead.”
The potential boost extends beyond retail to the beleaguered pub trade. The British Beer and Pubs Association has calculated that the World Cup could deliver a £275 million windfall if England reaches the final, with an additional 55 million pints drunk across the country. The opportunity comes at a critical time for pubs, which are currently closing at the rate of two a day, putting the future of the traditional British boozer under threat.
