British retail sales fell by the most in nearly a year in April as fuel sales plummeted, according to official figures published on Friday that added to signs of waning consumer spending against the backdrop of the Iran war and rising energy costs.
Retail sales volumes slid by 1.3% in April from March, the biggest monthly decline since May 2025 and sharper than the 0.6% decline expected by economists.
Fuel volumes plunged by more than 10% as users saved fuel having stocked up in March, the Office for National Statistics said. April's drop in fuel sales was the largest monthly fall since the COVID-19 pandemic.
Excluding fuel, sales volumes were down a less severe 0.4%, close to the Reuters poll forecast for a drop of 0.3%, Reuters reported.
Sales fell across every category except food. Clothing sales fell to their lowest level since June last year, with retailers citing weak confidence and variable weather.
Sterling weakened briefly against the dollar after the data was published but soon recovered.
"Concerns around the impact of the Iran conflict on the cost of living, alongside higher mortgage costs and continued pressure on household finances, are weighing heavily on consumer confidence," said Samuel Edwards, head of client portfolio management at financial services firm Ebury.
Earlier on Friday, a survey showed low levels of consumer confidence rose only slightly in May with households the least willing to make big item purchases in nearly a year and a half.
Major British retailers say uncertainty over the impact of the Iran war is weighing on their businesses and customers. They also say higher tax and more regulation are holding them back.
Some firms are bucking the trend. Fashion retailer Next posted better-than-expected first quarter sales and electricals retailer Currys edged up its profit outlook.
Compared with a year earlier, overall sales were flat, the ONS said, against economists' expectations of a 1.3% rise.
Excluding fuel sales, volumes were up 1.1%, weaker than the Reuters poll forecast of a rise of 1.5%.
The Bank of England has held interest rates as it weighs up the risk of weakening growth in the economy and labor market against the impact of the energy price shock on inflation.
Separate ONS data showed higher-than-expected government borrowing last month, underscoring the scale of the challenge facing finance minister Rachel Reeves.
