Warm weather boosted total retail sales in the UK during March, according to the latest figures from the British Retail Consortium (BRC).

The research found that sales increased by 1.1 per cent year-on-year during the four-week period compared with 3.5 per cent growth in March 2024.

The BRC said that sales were lower than the previous year due to an early Easter in March instead of April.

This year's better weather favoured a particularly strong final week, boosting sales of gardening and DIY equipment.

Jewellery and beauty products also benefited from Mother's Day, while sales of more expensive items such as furniture remained weak.

For March, the report cited an increase in sales of food products (1.6 per cent), non-food products (0.6 per cent), in-store non-food products (0.1 per cent), and online non-food products (1.9 per cent).

Helen Dickinson, chief executive of the BRC, explained that the figures show an underlying strengthening of demand despite a challenging global geopolitical landscape.

She said that since the start of April retailers have had to contend with £5 billion pounds of new government-imposed costs because of increases to the National Living Wage and National Insurance. This will rise to £7 billion when the new packaging tax comes into effect in October.

“Government has ample opportunities to kick start that investment by ensuring that no shop pays more as part of their planned reforms to business rates and that the Employment Rights Bill doesn’t reduce the availability of entry level and part time jobs,” she added.

Linda Ellett, UK head of consumer, retail and leisure at KPMG, which worked with BRC on the retail figures, 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.”

Sarah Bradbury, chief executive at grocery industry specialist IGD, noted shopper confidence fell from 4 to -2 in March after a brief boost in February, with rising geopolitical uncertainty and the imminent increases in household bills contributing to the decline.

“While half-term, Bank Holidays, and Easter may temporarily lift sales, the potential negative impact of US tariffs and recession concerns are likely to keep confidence low. We may have already seen the peak for some time,” she continued.


 

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