UK retailers entered the spring/summer trading period under growing pressure as weak consumer confidence, falling footfall and cautious discretionary spending weighed on sales across the sector.
New data from the British Retail Consortium (BRC) and other industry groups show that the UK retail sector is facing a difficult start to one of its most important trading periods of the year.
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Retail sales growth has remained fragile despite temporary support from Easter-related spending and seasonal promotions.
The latest figures point to slower growth in non-food retail categories such as fashion, homewares and lifestyle products. Retail analysts say rising household costs, inflation concerns and geopolitical uncertainty are causing consumers to prioritise essentials over discretionary purchases.
Weak consumer confidence
Consumer caution has become a central challenge for UK retailers in 2026. Industry data shows shoppers are reducing spending on non-essential goods while searching more aggressively for discounts and value offers.
According to the BRC-KPMG Retail Sales Monitor, non-food sales rose only 0.9% year-on-year in March, below the 12-month average. Online non-food sales increased by just 0.1%, reflecting subdued demand even in ecommerce channels.
Helen Dickinson, chief executive of the BRC, said retailers were “competing harder on price to stimulate more spring spending”.
Separate figures from advisory firm BDO showed discretionary retail sales fell 1.6% in April, marking the weakest April performance outside the pandemic in more than a decade. Fashion, homewares and lifestyle categories all recorded declines.
Industry analysts say many households remain focused on essential spending as higher food, housing and energy costs continue to limit disposable income.
Online discussions among UK consumers also reflect growing price sensitivity, with many shoppers reporting cuts to clothing purchases, takeaways and branded products.
Footfall declines across retail destinations
Retail footfall across the UK dropped sharply in April, adding further pressure on physical stores and shopping destinations.
BRC-Sensormatic data showed total UK footfall fell 10.7% year-on-year during the four weeks to 2 May. High streets recorded a 9.2% decline, while shopping centres and retail parks also experienced significant reductions in visitor numbers.
When March and April are combined to remove the timing effect of Easter, overall UK footfall was still down 3.9% compared with the same period last year.
Retailers are also facing increased competition from online marketplaces, resale platforms and discount chains as consumers look for lower-cost alternatives. KPMG’s Retail Think Tank noted that ecommerce growth continues to outperform store-based retail, while second-hand platforms such as Vinted are attracting a growing number of shoppers.
The pressure on store traffic is particularly significant for fashion retailers and mid-market brands that rely heavily on seasonal discretionary spending.
Cost pressures cloud outlook
Retailers are also dealing with mounting operating costs and broader economic uncertainty ahead of the summer season.
Industry groups say geopolitical tensions in the Middle East, rising fuel costs and ongoing inflation risks are increasing pressure across retail supply chains. Shipping, commodities and energy costs remain volatile, creating further uncertainty for retailers already operating on tight margins.
The BRC said Easter promotions and seasonal discounting helped slow shop price inflation in April. However, analysts warned that retailers may have limited ability to absorb future cost increases if consumer demand remains weak.
KPMG’s Retail Think Tank said the sector’s outlook for the second quarter remains “fragile”, with consumers delaying major purchases and focusing on value-led spending. The report added that retailers should prepare for selective demand rather than expecting a broad recovery in consumer activity.
Despite the difficult trading environment, food retail has remained more resilient than discretionary categories, supported partly by inflation-driven price growth and seasonal events such as Easter gatherings.
Non-food retailers, however, continue to face a slower and more uncertain recovery path.
