Office for National Statistics

Alcohol and tobacco sales boost retailers

New data shows sales of alcohol, tobacco, and sweet treats were the main drivers behind an unexpected rise in sales in April.

Overall UK retail sales rose in April, particularly at off-licences, according to new figures from the Office for National Statistics.

The data reveals that sales volumes increased by 1.4% in April, following a fall of 1.2% in March, despite the rising cost-of-living hitting household budgets.

Over the three months to the end of April, sales overall edged down by 0.3%, which revealed a longer downward trend, the ONS said.

Heather Bovill, the ONS Deputy Director for surveys and economic indicators, said: “Retail sales picked up in April after last month’s fall. However, these figures still show a continued longer term downward trend.

“April’s rise was driven by an increase in supermarket sales, led by alcohol and tobacco and sweet treats, with off-licences also reporting a boost, possibly due to people staying in more to save money.

In response, Oliver Vernon-Harcourt, Head of Retail at Deloitte, said: “Despite expectations, the arrival of April’s warmer weather and the first bank holiday barbecues of the year have fired up retail sales, as both values and volumes rose by 1.9% and 1.4% respectively, driven by food sales and the first Easter free of Covid-19 restrictions.”

Silvia Rindone, EY UK&I Retail Lead, added: “Consumers are now making more considered decisions about how to spend their money as a result of the squeeze on their finances. We expect significant ‘trading down’ to ‘own-label’ brands, repeating what we saw in the 2008-9 financial crisis, but we also expect an increasing focus on ‘value for money’ options as sustainability-conscious consumers look for purchases that will last.”