Supermarkets buck ‘downbeat’ consumer spending trend

Supermarkets took more through the tills in April than they did a year ago, with analysts announcing an 8.6% increase.

This comes despite the ONS reporting a 1.4% decrease in retail revenue in March.

The big players’ performance from March 25 to April 22 this year was boosted by a late Easter but even when this is ignored, it still showed a 2.8% increase.

Overall the volume of goods sold rose 3.2% with impulse goods showing the biggest yearly gains at 7.5%.

The figures, supplied by Nielson indicate ‘underlying health’ in the industry according to their head of retailer and business insight, Mike Watkins.

The expert said this counters a 'downbeat trend' of articles about consumer spending.

However, Sainsbury's latest financials reveal that rising costs may negate these revenue gains. The company posted a 1% reduction in revenue, but an 8% reduction in profit.

The company's outlook supported Watkins' 'underlying health' comment, but also highlighted  'uncertain' price pressures looking ahead.