Retail sales rose 0.4% in March for the third month in a row, with warm weather driving increased demand for garden furniture and summer clothing, with sales volumes for non-food stores at their highest levels in three years.
Danni Hewson, AJ Bell head of financial analysis, comments on the latest UK retail sales figures:
“A little bit of sunshine makes us all feel better. We want to venture out with friends and family and once we’ve riffled through our wardrobes and discovered last year’s fashions crumbled at the bottom, many of us decide the time is right to splurge on a bit of spring colour.
“March was a real sweet spot for many households with inflation continuing to cool and wage increases not yet ravaged by an increase in bills. Our gardens also suddenly came into play as extra rooms perfect for entertaining, particularly if they had a few extra plants or new outdoor furniture for lounging in the unexpected sunshine.
“What is notable is that sales volumes for non-food stores soared to their highest levels since March 2022 and over the first three months of the year sales volumes across the board shot up by the most since July 2021.
“For retailers these figures will be heartening, coming after what was a disappointing Christmas for the sector. But most will be braced for a change in fortunes.
“Prices for fundamentals like energy, water and council tax increased substantially at the start of April and a new survey by GfK shows that consumer confidence has been shaken by fears that rising inflation is set to make an unwelcome return and concerns about the potential impact of Donald Trump’s tariffs on the stuff we want to buy.
“Added to all the uncertainty, there’s the absolute certainty that costs for many retailers have gone up thanks to increases in employer NI and the National Living Wage, making these figures seem woefully out of date. But there are potential positives that could colour the outlook, with the Bank of England expected to cut interest rates next month and the possibility that cheap goods which had been destined for the US could end up on UK shelves.”
