In March, retail sales in the United Kingdom shot up a record amount. Here is what we have learned from national data, recently made available by the Office for National Statistics (ONS). Sales volumes were up 0.4% for the month, the third month in a row of positive growth. Overall, this is a very positive trend that has resulted in an impressive quarterly increase of 1.6% from January to March. This is the biggest increase we’ve experienced in almost four years!
The ONS attributes this growth to the impact of favorable trading conditions. Of course, garden centres did very well, aided and abetted by the marvellous weather during March. In addition to driving up sales at these venues, warmer temperatures lifted demand for apparel and DIY products. In-store retail The increase in non-food store sales was most significant, skyrocketing by 1.7 percent month-over-month.
Food store sales volumes had a -1.3% change in March. Analysts were looking for a 0.4% decline in retail sales this month. The real jump in the local cost has been even greater than they expected.
The ONS report highlighted that various sectors contributed to the sales surge, with outdoor retailers capitalizing on favorable weather conditions.
“Consumers have not only been grappling with multiple April cost increases in the form of utilities, council tax, stamp duty, and road tax, but they are also hearing dire warnings of renewed high inflation on the back of the Trump tariffs,” – Neil Bellamy, consumer insights director at GfK.
Yet worries abound as two other, more general-purpose, polls have pointed to a drop-off in consumer optimism over the course of April. Analysts warn that the near-record sales growth streak is not likely to be sustainable as various headwinds blow.