Retail sales fall sharply in April

Retail sales fell again in April with big-ticket items suffering the largest declines, according to a survey.

The Confederation of British Industry (CBI) asked high-street retailers how sales in April compared to last year and 52 per cent said sales were down, compared to 25 per cent who said sales were up.

Overall, this signals the weakest trade environment since November 2005 and is only expected to improve slightly in May.

Half of retailers (53 per cent) said sales for the time of year were poor, while only 15 per cent reported them as good.

The dramatic fall in sales was due to the early timing of Easter, which fell in March this year, and rainy weather which kept shoppers at home.

Sellers of durable household goods reported the weakest sales balance, while hardware, china & DIY sales were also down on a year ago, as were furniture & carpets.

Clothing was also down, although shoes & leather goods were up. The grocery sub-sector, which has beaten the downturn so far, recorded its lowest balance since November 2006.

Vicky Redwood from Capital Economics said: "April's CBI distributive trades survey widens the divergence between the robust official retail sales data and the much weaker survey and anecdotal evidence.

"We suspect, as the CBI survey suggests, that the spending slowdown is already well underway."

Although the early Easter and the wet weather undoubtedly had an impact on sales volumes, the poor performance in the home retail sector reflects a slower housing market, the CBI said.