Retail sales drop at fastest rate in a year led by petrol slump as households conserve
Retail sales dropped at their fastest rate in almost a year in April as households started to feel the impact of the Middle East conflict.
The Office for National Statistics said retail sales volumes, which measures the quantity of items bought, fell by 1.3 per cent in April.
It follows a 0.6 per cent rise in March, which was revised slightly lower, and marks the largest drop since May 2025.
Soaring fuel prices hit petrol sales, which plunged 10.2 per cent. Retailers suggested drivers had reduced journeys and used fuel stocked up in March. Excluding petrol, retail sales fell 0.4 per cent on the month.
Demand for clothing and shoes was particularly weak, with sales down 2.4 per cent on the month. Retailers pointed to ‘variable’ weather conditions and price sensitivity as sales reached their lowest level since June 2025.
Shoppers conserved petrol amid higher prices triggered by the Middle East conflict
Instead, shoppers spent more on beauty and accessories, ‘proving the ‘lipstick effect’ as consumers treated themselves on lower value items instead of new wardrobes,’ said Jacqueline Windsor, head of retail at PwC.
Computer and telecom sales were also up, following product releases in March.
Across groceries, shoppers are leaning on promotions and value, leaving retailers in a precarious position.
The snapshot of retail sales shows that the full impact of the conflict is starting to feed through to consumer confidence.
Households have proved to be more resilient than first thought. GfK’s consumer survey found confidence surprisingly rose in April, as the cut in the energy price cap provided some short-term relief.
However, the second quarter is likely to be trickier, with petrol prices still elevated and the prospect of an increase in household energy bills in July.
‘Retail is one of the first sectors to feel the impact when households turn defensive,’ said Martin Beck, chief economist at WPI Strategy.
‘With the labour market softening, real income growth still weak and frozen tax thresholds continuing to drag more earnings into tax, retail spending remains highly exposed to any further squeeze on disposable incomes.’
He added: ‘Unless energy prices ease and confidence stabilises, April’s weakness could prove a taste of things to come.’
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