// March retail sales dipped 0.9% in March as the wet weather hit demand
// It was the 12th consecutive month of declining sales volumes in retail
Wet weather hit UK retail sales in March with volumes falling 0.9% month on month in March, wiping out the 1.1% rise seen in February, according to the Office of National Statistics.
Sales volumes excluding fuel declined 3.2% against last year, however values were up 6%, although this was driven by double digit inflation.
BRC chief executive Helen Dickinson pointed out that March was the 12th consecutive month of declining sales volumes.
She added: “Despite many consumers tightening their purse strings, they still wanted to celebrate special occasions, and there was particular strong growth in jewellery and cosmetics sales thanks to Mother’s Day gifting.”
Lisa Hooker, industry leader for consumer markets at PwC, said that “retail sales in March seem to have been as much of a washout as the weather”.
However, she pointed out that the sales slowdown was a result of specific factors and not indicative of a longer term trend.
“Fresh food shortages earlier in the month limited grocery sales volumes, while the wettest March in England for over 40 years put a dampener on high street sales, with the likes of new season fashion and garden centre sales suffering as a result,” Hooker explained.
Food sales volume fell 0.7% month-on-month, while non-food volumes dipped 1.3%, following a 2.4% in February, with poor weather hitting demand in areas like clothing,
Online sales fell 0.8% over the month.
Hooker said that despite March’s dampened sales, there were reasons to be positive.
“While March’s rain may have washed out the green shoots from February, the overall momentum of the retail sector remains positive, and better than many expected at the start of 2023,” she said.
“In addition, the Easter holidays, upcoming Coronation and three bank holidays in May will provide more opportunities and more reasons for many consumers to hit the high street. We have already seen consumers prioritise spending on special occasions such as Mother’s Day last month.
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“The positive momentum will need to be offset with the continuing cost-of-living crisis that is affecting families in particular, so we continue to expect shoppers to trade down and be cautious with bigger ticket spending, at least until inflation is forecast to subside later in the year.”
Dickinson said that retailers are feeling optimistic on the big events in the Spring calendar, however flagged that “the removal of Government support for household bills from this month will mean consumer discretionary spend will be under additional pressure”.
“We need Government to help retailers keep prices down and shore up consumer confidence by ensuring any additional regulatory burdens are kept to a minimum, as these additional cost pressures will inevitably mean that consumers will be further squeezed,” she added.
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