Retailers saw some “green shoots” of recovery in March as the warmer weather and Mother’s Day led Brits to buy more, according to two separate reports.
Monthly retail sales were up 1.1% year on year, despite a later Easter distorting the figures, according to KPMG and the British Retail Consortium (BRC). Last year, sales rose by 3.5% in March due to the earlier Easter holiday.
Food sales were up by 1.6% in March this year, coming off an 8.3% rise in the same month in 2024. Non-food sales grew 0.6%.
The strong sales came despite fears US tariffs will impact consumer confidence and signalled an “underlying strengthening of demand”, according to Helen Dickinson, CEO of the BRC.
“The improving weather made for a particularly strong final week, with gardening and DIY equipment flying off the shelves,” she said. “Retailers are making final preparations for Easter, with food expected to be the big winner next month.”
New figures from Barclays this week also showed a 0.5% rise in consumption in March.
Barclays’ survey of 2,000 respondents suggested Donald Trump’s tariffs are changing behaviour in the UK, with 71% wanting to support domestic businesses by buying more UK products and 40% actively looking for British alternatives to overseas goods.
The reports follow last week’s higher-than-expected GDP growth in February of 0.5%, in part driven by higher consumer spending.
But Dickinson at the BRC warned increases in National Insurance contributions for employers and new payments related to packaging recycling would “undoubtedly increase inflation later in the year and hold back critical investment in high streets across the country”.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “Amidst downbeat consumer confidence in the UK’s economic outlook, and many households facing rising costs, retail sales growth feels an achievement.”
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