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UK total retail sales increased by 3.6% year on year in March, exceeding the 1.1% growth recorded in the same month in 2025.
Data indicates performance sat above the 12-month average growth of 2.6%. Food sales rose 6.8% during the period, up from 1.6% in March 2025.
Non-food sales grew by 0.9% year on year, falling below the 12-month average of 1.1%. In-store non-food sales increased by 1.4%, while online non-food sales rose 0.1%.
The online penetration rate, representing the proportion of non-food items purchased online, decreased to 37.6% in March from 38.1% in March 2025.
Cost pressures remain high, with petrol prices at the pump increasing by approximately 18% since the start of the Middle East conflict.
Chief executive at the British Retail Consortium Helen Dickinson said: “An early Easter provided a much-needed boost to food sales as families came together over the long weekend. Non-food performance was more uneven: demand was robust for computers, toys, and homeware, but clothing and footwear continued to struggle. The disruption to international travel caused by the Middle East conflict also hit sales of travel-related goods.
“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 onto already stretched retailers. Government must act decisively and boldly now to curb inflation by delaying domestic policies that would push prices even higher for shoppers.”
UK head of consumer, retail and leisure at KPMG Linda Ellett, said: “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% so far this year, as consumer spending caution is heightened by the current and potential impact of the Middle East conflict.
“Despite this challenging trading landscape, monthly examples of category sales growth remain, with mobile phone and computing, beauty products and toys and baby goods all up in March. While margins remain under pressure on a number of fronts, retailers need to continue to focus on their month-to-month pricing and promotions, their supply chain resilience and delivering the technological transformation needed to set the foundations for growth.”
Chief executive at IGD Sarah Bradbury added: “The conflict in the Middle East is having an immediate impact on costs with petrol prices up by around 18% at the pump compared to before the conflict began. Expectations are that the conflict will continue to increase cost pressures, with rising risks to heating bills, food prices and interest rates.
“As a result, shopper confidence has dropped to the lowest level since 2023. While occasions such as Mother’s Day and Eid provided moments of celebration, they were not enough to offset growing shopper concerns about rising costs. The months ahead will therefore be challenging for both shoppers and the food and drink industry.”
