Latest figures from the BRC-KPMG Retail Sales Monitor show total retail sales rose by 5.1% in March as spending for Mother’s Day helped offset the wet weather keeping consumers at home.
However, the figure was down from annual growth of 5.2% in February as cost-of-living pressures remained.
“While the wettest March in over forty years dampened sales growth for fashion, gardening and DIY products, Mother’s Day brightened up sales for the month,” said BRC Chief Executive Helen Dickinson, noting that jewellery, flowers and fragrances were big-selling items.
She suggested that improving consumer confidence and big events such as the King’s Coronation could help struggling retailers in the months ahead. However, Dickinson noted that extensive cost pressures on business remain, and called on the government to ensure it minimises incoming regulatory burdens. “Unless these future costs are brought to a heel, we will likely see high inflation continue for UK consumers who already face rising household bills from this month,” she said.
Meanwhile, Paul Martin, UK head of retail at KPMG, highlighted that people were choosing to eat at home rather than go to restaurants to cut costs. He expects this trend to continue in April as household bills and council tax rises at a time when the government starts to withdraw energy bill support.
“We will see consumers having to further cut back on discretionary spending,” Martin said. “Consumers will continue to take steps to reduce spend where they can – switching where they shop, what they buy, and spending on fewer items.”
