Sunshine and holidays helps retail sales bounce back

Shop sales returned to growth last month after being boosted by record-breaking sunny weather, a report today said.

Like-for-like sales increased by 5.2% in April after a decline of 3.5% the previous month as customers splurged on barbecue food and outdoor clothing, according to the British Retail Consortium (BRC).

The figures were also lifted by the royal wedding and the late Easter holiday season, which partly fell in March the previous year.

But the higher sales are not expected to continue and more problems lie in store for the high street, warned the BRC.

The feeble state of the economy means nervous consumers are expected to return to their previous habit of reining in spending on all but essential items.

Shops have struggled in recent months to pass on rapidly rising costs at a time when consumers seek out special offers and bargains.

Household spending power is facing its biggest squeeze since the 1920s amid Government cut-backs and a depressed jobs market.

Numerous retailers have issued profits warnings in recent months and Focus DIY and wine merchant Oddbins recently fell into administration.

BRC director general Stephen Robertson said: "Easter and the royal wedding provided a badly needed boost to many retailers during April.

"These sales figures are a relief after the dire sales falls we saw in March, but are not the full picture.

"The underlying pressures on the retail sector of climbing costs and depressed consumer spending will be problems for many months to come."

April's sales rise roughly cancels out the decline the previous month, leaving the underlying picture for the two months flat, he added.

Grocery sales returned to growth in April, after a decline in March, as shoppers stocked up on ice cream, barbecue food and beer, as well as traditional Easter meals. And the royal wedding sparked a surge in sales of champagne.

Clothing showed its biggest sales rise for more than a year, as people snapped up summer clothes including T-shirts and swimwear. Sales of gardening equipment and outdoor furniture were also helped by the warm weather.

But there were "really tough conditions" for retailers selling indoor furnishings and flooring while it was another difficult month for electrical stores as consumers delayed purchases of big ticket items.

Internet sales increased 13.7% - nearly double the 7.5% shown in March but still below the rate a year ago.