UK retail sales rose in March, but the uplift was driven largely by food spending and an early Easter, with non-food demand remaining subdued.

New figures from the British Retail Consortium and KPMG showed total retail sales increased 3.6 per cent year on year last month, ahead of the 12-month average of 2.6 per cent. Like-for-like sales rose 3.1 per cent, up from 0.7 per cent in February.

Food was the clear driver of that growth, with sales up 6.8 per cent as families gathered over the Easter period.

Essential spending also returned to growth for the first time since July, rising 0.5 per cent, helped by higher fuel prices.

By contrast, non-food sales remained weak. They rose just 0.9 per cent year on year, below the 12-month average of 1.1 per cent, while online non-food sales edged up only 0.1 per cent, pointing to a still-fragile level of consumer confidence.

Demand held up better in categories such as computers, toys and homewares, but clothing and footwear continued to struggle.

Travel-related spending was also hit, as geopolitical tensions and higher fuel costs weighed on holiday plans and wider travel demand.

Separate figures from Barclays painted a similarly cautious picture, showing overall consumer card spending rose just 0.9 per cent year on year in March, down from one per cent in February.

Travel spending fell 3.3 per cent, marking the first decline in five years, as some consumers delayed trips abroad or opted for staycations instead.

Discretionary spending growth slowed to 1.1 per cent, while research for Barclays found that 14 per cent of consumers were delaying major purchases or financial decisions in response to uncertainty linked to the Middle East conflict.

The same proportion said they were building up savings in case costs rise further.

BRC chief executive Helen Dickinson said: “An early Easter provided a much-needed boost to food sales as families came together over the long weekend.

“Retailers hope that the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain.

“Damage to supply chains has already been done, and rising costs – from shipping and fertiliser to insurance and commodities – are piling yet more pressure on to already stretched retailers.”

KPMG UK head of consumer, retail and leisure Linda Ellett added: “Food and drink continue to drive monthly retail sales growth, with inflation a key factor.

“Non-food sales growth remains tepid, growing at under 1 per cent so far this year, as consumer spending caution is heightened by the current and potential impact of the Middle East conflict.”

Barclays chief UK economist Jack Meaning said the growing tendency for shoppers to delay larger purchases and build a savings buffer suggested spending activity could remain muted in the months ahead.

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