Biggest sales increase since 2004
Retail sales volumes in the three months to March rose 4.5 per cent, compared to last year - the highest increase since November 2004 - Office for National Statistics (ONS) data showed.

Sales volumes between February and March climbed 0.3 per cent. Increases were reported for all sectors except non-store retailing, where sales fell 3.8 per cent.

The largest rises occurred in non-food and clothing retailers, where sales increased 1 per cent and 0.9 per cent respectively.

The average weekly value of sales in March was£4.8 billion, 5.8 per cent higher than last year and the highest annual growth since May 2004. Sales by non-food stores increased 6.2 per cent over the year, compared with a 5 per cent for food stores and 8.9 per cent for non-store retailing.

The volume of retail sales in the three months to March was 0.4 per cent higher than the previous three months to February, which had a 1.2 per cent growth and compares with a fall of 0.3 per cent in the same period last year.

Barclays business banking national director for retail and wholesale Paul Clarke said: 'The figures for March confirm that, despite the disappointment in January, growth in retail sales has been remarkably robust in the first quarter of the year. The buoyant housing market continued to benefit household goods retailers in particular.

'Reports suggest that trading was brisk over the Easter weekend, especially for garden centres and DIY stores, which benefited from the favourable weather. But it remains to be seen to what extent consumer confidence is impacted by news this week that inflation has risen to more than 3 per cent and fears that interest rates may therefore have further to rise.

'There continues to be polarisation in the market, with the best-performing retailers going from strength to strength, whist struggling high street names are seeing little upturn in their fortunes.'