The latest BRC-KPMG Retail Sales Monitor shows that retailers experienced a better-than-expected March as warm Spring weather and Mother’s Day boosted demand for gardening, DIY, food, health & beauty, and jewellery products.
Total retail sales rose 1.1% last month, keeping pace with February despite trading against a much stronger period a year before, which included the Easter holidays.
Food sales increased by 1.6%, against a growth of 8.3% in March last year, with stronger performance expected this month as consumers prepare for Easter.
Meanwhile, non-food sales edged up 0.6% as strong demand for seasonal items was offset by weak sales of bigger ticket items like furniture.
“Despite a challenging global geopolitical landscape, the small increase in both food and non-food sales masked signs of underlying strengthening of demand given March 2025’s comparison with last year’s early Easter,” said Helen Dickinson, Chief Executive of the British Retail Consortium (BRC).
However, she warned that the increase 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 & Leisure at KPMG, noted that the retail sales growth feels an achievement given the downbeat consumer confidence in the UK’s economic outlook and many households facing rising bills.
She added: “Retailers will be pushing for higher growth rates as we move toward summer and holiday season, particularly as they are now paying higher wage costs and facing volatility and potential impact on their supply chains due to global tariffs.”
NAM Implications:
- Every little helps…
- But still essentially a flat demand market of reluctant consumers.
- And more than a hint of residual tariffs impact.
- Where any real growth comes at the expense of rivals.
- Maybe time for an objective reassessment of relative competitive appeal?
