THE OWNER of a small Lancashire business says they are “fighting harder for sales than ever before” as the cost of living crisis appears to hit independent retailers harder than chain companies.

New data from the Office of National Statistics (ONS), published on Friday (20 May), suggests the UK’s retail sector saw a 1.4 per cent rise in sales in April.

Customers flocked to supermarkets and also bought more cigarettes and alcoholic drinks, but spent less in non-food shops.

Non-store retailing sales volumes, which are predominantly sales from online-only retailers, rose by 3.7 per cent in April 2022 led by stronger clothing sales as people get their wardrobes ready for summer.

While this data appears to show a promising retail trend, experts suggest “beneficiaries appear to be billion pound businesses rather than the small independent ones”.

Joanne Maclachlan, owner of Chorley-based The Eco Friendly Living Co, said it is “difficult to understand the data” suggesting the increase alcohol and tobacco sales could possibly be due to people staying in more to save money.

Joanne said: “Clearly people are staying in and are focused on the essentials. 

"As a small retailer myself, I am having to fight harder for sales than ever before.”

Joanne said the cost of living crisis has hit the business harder than the pandemic.

She said: “For me, the cost of living crisis is more severe than the pandemic as a lot of customers supported small businesses during the various lockdowns. People can't afford to do the same now.

"We attend regular farmers' markets and both footfall and sales are down at every single one as people don't have the money that they used to.

"While support was offered during the pandemic for struggling businesses, nothing so far has been offered to me by my local council or the Government.”

Government High Streets Task Force expert and ShopAppy founder, Dr Jackie Mulligan, described this as a “cost of living catastrophe” for small businesses.

Jackie said: “People are clearly spending more on staying in, and more did it from their sofas in April.

“The shift online is here to stay and the beneficiaries appear to be billion pound businesses rather than the small independent ones that line our high streets. 

“The three month period to April is a far better gauge of what's happening. Strong sales of alcohol, tobacco and sweets may well highlight the growing anxiety among households. 

We work with and hear from thousands of small independent retailers around the country and it’s devastating to see a growing number of them have to shut up shop for the last time.

“This isn’t a cost of living crisis, it’s a cost of living catastrophe.

“With inflation at nine per cent and expected to get higher, people are understandably cautious or simply don’t have the money to spend on anything bar the necessities, and it has the potential to kill off the high street.

“We’re urging people to shop local whenever they can, and spend their money with small businesses not the billionaires."

Opposingly, David Baker, chief investment officer at consultancy Mazars, said that retailers who are being forced to pass on their increased costs to customers will be somewhat reassured by April’s figures.

“The reading contradicts recent consumer confidence data and suggests that near full employment and the ability of consumers to tap into savings accrued during the pandemic may be preventing shoppers becoming overly cautious despite the cost of living challenges associated with high levels of inflation,” he said.

But Ralph Robinson, head of retail at technology consultancy BJSS, said that April’s figures should not give false hope after the contraction over the last three months that data are available for.

“Retailers looking for some form of respite from today’s ONS figures will be disappointed; after years of turmoil from Brexit to Covid and now the Ukraine conflict, consumer confidence remains low and macroeconomic shocks like high inflation will continue to pile greater pressure on retail sales and margins,” he said.