Home UK Some cheer for retail amid high street crisis

Some cheer for retail amid high street crisis

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Retail sales bounced back last month after the so-called Beast from the East exacerbated the crisis facing the high street, according to official figures.

The Office for National Statistics (ONS) recorded a 1.6% rise in sales volumes during April compared to March – a rate that smashed economists' expectations.

The figure represented some hope for retailers – and the economy – that February and March proved a blip for the sector because of the poor weather.

Image: Heavy snow and biting temperatures in February and March took their toll on the high street

A string of big name retailers have encountered trouble this year amid a spending slowdown blamed on wage growth failing to keep pace with price increases for the space of a year.

Because that squeeze on household budgets has now been erased, technically at least as salaries grow above the rate of inflation, economists believe spending will cautiously start to pick up again.

In its update on Thursday, the ONS said the picture for spending over the past six months was broadly flat.

It goes some way to explain why the likes of M&S, New Look, House of Fraser, Mothercare and Carpetright are planning to close stores following the demise of chains such as Toys R Us UK and Maplin.

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They are also battling heavy costs and suffering stiff competition online.

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