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UK Total retail sales increased by 1.1% year on year in March, against a growth of 3.5% in March 2024, with gardening and DIY sales being boosted by good weather.
New data from the BRC and KPMG revealed that the increase was below the 3-month average growth of 1.6% and above the 12-month average growth of 0.6%.
In the five weeks to 5 April, food sales increased by 1.6% year on year in March, against a growth of 8.3% in March 2024. This was below the 3-month average growth of 2.3% and below the 12-month average growth of 2.2%.
Non-food sales also increased by 0.6% year on year in March, against a decline of 0.4% in March 2024. This was below the 3-month average growth of 1.1% and above the 12-month average decline of 0.8%.
In-store non-food sales decreased by 0.1% year on year in March, against a growth of 0.1% in March 2024, while online non-food sales increased by 1.8% year on year, against a decline of 1.4% the year prior.
Jewellery and beauty products sales were also boosted by Mother’s Day, but bigger ticket items like furniture remained weak.
The BRC noted that the current data distorts the year on year sales comparisons for the period due to the fact that Easter falls in April while last year it fell in March, resulting in an “artificially higher” April.
Helen Dickinson, chief executive of the BRC, said: “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. Retailers are making final preparations for Easter, with food expected to be the big winner next month.
“Since the start of April, retailers have had to contend with £5bn of new government-imposed costs as a result of increases to the National Living Wage and National Insurance. This rises to £7bn when the new packaging tax comes into effect in October and will undoubtedly increase inflation later in the year and hold back critical investment in high streets across the country.”
She continued: “The 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. Investment and growth are what the economy needs right now.”
Linda Ellett, UK head of consumer, retail and leisure, KPMG, added: “Amidst downbeat consumer confidence in the UK’s economic outlook, and many households facing rising costs, retail sales growth feels an achievement. But with non-food sales only climbing around 1% on average, competition means there are some retailers really struggling whilst others win, especially online. 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.”
