RETAIL sales have fallen further than expected by 1.3% as “high streets continue to feel the squeeze” and experts fear it’s “a warning sign that people are getting more cautious”.
Volumes fell by 1.3% in April 2026, following a rise of 0.6% in March 2026 and a fall of 0.8% in February 2026, Office for National Statistics data shows.
Fuel volumes fell in April as some retailers suggested that motorists were conserving fuel – this followed strong March growth, with retailers reporting that motorists stocked up as prices rose.
Total retail sales, excluding automotive fuel, fell by 0.4% on the month. Both clothing and non-store retailers were down compared with March 2026, which retailers attributed to variable weather and lower demand.
Experts warn that April’s figures showed that high streets are struggling.
April exposed a retail market still running on selective demand
Nicholas Found, Head of Commercial Insights at Retail Economics, said shoppers are unable to spend due to the cost of living rising.
He added: “April exposed a retail market still running on selective demand. Weak sales levels were hardly surprising. Households have become more defensive as petrol prices rose, prompting many to limit journeys, while fears intensified over the fallout from the Middle East conflict.
“Where demand did hold up, it was concentrated in more purposeful purchases such as health, beauty and new tech. Across food, shoppers are leaning harder on promotions rather than spending with confidence. It leaves many retailers squeezed from both sides.
“Ministers are pressing supermarkets to pass through savings and ease pressure on stretched households, yet retailers themselves are contending with rising wages, higher operating costs and margin pressure of their own. In this environment, it’s a year of market-share battles, not market expansion. There is still opportunity for those able to invest in value while executing with discipline to protect margins. The challenge is balancing both.”
Chris Barry, Director at London-based Thomas Legal, said the UK economy will not grow.
He added: “Retail sales is typically representative of overall growth and today’s data is certainly telling of an economy that isn’t set to grow.
“The Bank of England (BoE) should consider this data, along with the highly likely event that more burden will be placed on UK households due to the ongoing war in Iran, and proactively start to reduce the base rate to help inject confidence back to the consumer.”
David Stirling, Independent Financial Adviser at Belfast-based Mint Wealth, said the high street is in trouble.
He added: “A death knell for the high street, this data underlines how traditional retailers are being squeezed from every angle: a stuttering economy, persistent cost-of-living pressures, and relentless competition from online giants and supermarket chains.
“Consumers are clearly pulling back, and unless confidence improves soon, many retailers will fear this is more than just a temporary slowdown.”
High streets are continuing to feel the squeeze
Harry Goodliffe, Director at Winchester-based HTG Mortgages, said “household confidence is still weak” when it comes to spending.
He added: “High streets are continuing to feel the squeeze, a 1.3% drop in retail sales is definitely a warning sign that people are getting more cautious with where their money goes. Falling fuel sales as drivers try to save cash show households still feel under pressure despite all the recent talk of recovery.
“Retailers will have to lean harder on discounts and loyalty perks, but the government can’t ignore the much bigger issue: household confidence is still weak. Until the government gets a grip on living costs and economic stability, people will keep cutting back where they can.”
Colette Mason, AI Ethics Consultant at London-based Clever Clogs AI, said AI is causing economic damage.
She added: “People stop spending because they’re frightened, and right now the relentless drumbeat from leaders that AI is coming for everyone’s job is doing more economic damage than AI itself. Silicon Valley CEOs need to take a long hard look at their messaging.
“Creating hype for salivating CEOs looking to slash costs and squeeze the pips out of everything is thoroughly irresponsible. It raises the hackles of the nation, slows down genuinely helpful transformation, and poisons most people’s outlook about AI, even when there are shreds of good news. The vast majority of job-replacement claims are wildly overstated, built on keynote bravado and vendor brochures, not actual deployment.
“Most small businesses aren’t replacing people. They’re struggling to tame the tools they’ve bought. Wallets will open again when working people feel secure again, and that starts with leaders who stop selling fear and start telling the truth.”
Photo by Alexander Grey on Unsplash.
