Clothing and outdoor retailers cited good weather as the reason for a rise in sales volumes, which rose by 0.4% versus the previous month. Analysts had been expecting a 0.4% fall.
It marks the third consecutive month of increases in retail sales, albeit with momentum slowing month on month. January saw a 1.3% rise, while February sales rose by 0.7% (a downward revision since the sales figures were first announced last month).
This equates to a 3.8% year-on-year rise in sales values and 3.3% rise in volumes when petrol sales are excluded.
Britain saw the sunniest March since records began this year. This coincided with month-on-month rises in clothing sales (3.7%) and other non-food stores (2.4%). Grocery sales, meanwhile, dropped by 1.3%.
PwC Head of Retail Jacqueline Windsor said the figures should be read with caution as the ONS had to seasonally adjust the figures to account for Easter and the school holidays falling in April (Statisticians at the ONS adjust the volumes and sales figures to account for monthly variations in buying behaviour).
“Ironically, the only thing that the warm, dry weather did not seem to help was the high street itself, with penetration of online retail sales increasing from 26.4% in February to 26.8% in March,” Windsor added.
Economists will be closely watching the April figures to see if the positive momentum continues. In what some dubbed awful April, Britons faced bill rises across council tax, utilities, car tax, TV licences and more.
This will be partially offset by wage rises, including an uplift in the national living wage.
GfK figures released today showed a four point drop in its headline consumer confidence measure. The bill rises have come alongside fears of high inflation in the wake of Trump tariffs.
“It was not all good news for retailers as the start of April unleashed over £5bn in costs from increases to employer NICs and National Living Wage. This will rise to £7bn when the new packaging tax comes into effect later this year,” said Kris Hamer, director of insight at the BRC.
“Furthermore, the upcoming business rates reform could see 4,000 shops paying even more in business rates, which would cost shops and jobs. The government’s aim is to support high streets across the country, which is why they must ensure no shop pays more as part of their rates reform.”
No comments yet