Food sales fell by 2.5% in April as shoppers continued to rein in spending as a result of the Middle East conflict, according to the latest BRC-KPMG retail sales monitor.
The overall rate of the year-on-year decrease was distorted by a calendar change in 2026, where Easter fell in March, compared with April last year, the BRC warned. This resulted in an artificially higher March but lower April.
Taken on a monthly basis, total retail sales fell by 3% over the four weeks between 5 April and 2 May, against a growth of 7% in April last year. To compensate, the BRC provided a combined two-month year-on-year comparison, which showed total UK retail sales increased by 1.5% year on year.
Nevertheless, consumer confidence had been weakened by the Iran war and had impacted sales, said BRC chief executive Helen Dickinson.
“Fears about the Middle East conflict driving up living costs led shoppers to rein in,” she said. “Big-ticket purchases fell, with the recent recovery in furniture losing steam, and uncertainty around summer holidays hitting discretionary spend.
“With the World Cup coming, retailers hope it will provide a lift, and early signs show demand for TVs and sound systems picking up,” she said.
The impact of rising food inflation was increasingly split by income, said IGD CEO Sarah Bradbury.
“Lower‑income households are already feeling the impact of higher fuel costs and remain highly value‑focused, while higher‑income shoppers are more insulated, supported by elevated market interest rates and the upside for savings,” she said. “Retail value growth has slowed sharply year on year and volumes remain fairly flat, signalling continued budget‑management for shoppers.”
While the temporary ceasefire had “briefly” lifted shopper confidence, the time lag on disruption to energy markets and impact of food inflation would increase pressure over the next few months, she warned.
“Food and drink retailers should plan for continued trade‑down from shoppers, heightened promotional activity, and uneven demand,” Bradbury said.
Government must ‘act now’ to curb food inflation
Dickinson repeated calls for the government to provide more support to food manufacturers and retailers to help curb the impact on food prices, which are on track to be 50% higher by November 2026, compared with the start of the cost of living crisis in 2021.
“Global events might be out of government’s hands, but costs imposed at home are not. Ministers must act now to curb the impact on consumers from soaring costs,” she urged.
”That means cutting non-commodity energy charges – which include the taxes and levies that make up to two thirds of retailers’ energy bills, scrapping or reforming the triple tax on packaging, and delaying the upcoming changes to the way we measure the nutritional content of food.”
No comments yet