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UK retail sales rise 1.6% in first quarter

UK retail sales rise 1.6% in first quarter

Fuel and online sales drive growth as volumes recover from February slump

On this episode of Talking Shop we are joined by Phil James, founder and Creative Director of the contemporary heritage clothing brand &SONS. Phil began his career behind the lens as a commercial advertising photographer, working with global brands to hone a distinct visual language. But in 2016, he decided to step out from behind the camera to build a brand of his own.

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Retail sales volumes increased by 1.6% in the first quarter of 2026, supported by strong performance in non-food stores and online platforms.

The growth between January and March follows a 0.7% rise in March alone, which offset a 0.6% decline in February. Monthly fuel sales rose sharply as motorists stocked up amid rising prices linked to conflict in the Middle East.

Non-food store volumes grew by 4.7% over the quarter, the largest three-monthly increase since March 2024. Success was reported in commercial art galleries and cosmetics stores, while clothing retailers attributed a rise in March sales to improved weather conditions.

Online spending values rose by 2.5% in the first quarter of the year. The proportion of sales made online increased to 28.7% in March, the highest level since February 2022, as retailers cited successful spring sales and new product launches.

ONS senior statistician Hannah Finselbach said: “Retail sales rose in the three months to March, with commercial art galleries doing well earlier in the quarter and sales in beauty products stores rising as retailers reported launching new collections. Online shops also saw strong sales across the period.

“Motor fuel sales were up on the quarter, with retailers commenting that many motorists had been filling up their tanks in March following the start of conflict in the Middle East.”

Harvir Dhillon, economist at the British Retail Consortium, added: “Food sales were boosted last month as families and friends came together for Easter. Health and beauty continued to perform well, as did computers with people upgrading to newer models. Meanwhile, items such as TVs struggled as people held back on larger purchases, and footwear also continued to struggle with low demand.

“Ongoing geopolitical volatility has dragged down consumer confidence, which is now at a record low. And while higher inflation may deliver the sugar high of greater sales values, volumes are likely to drop as the cost of living squeeze gets worse. Government should focus on keeping domestic policy costs down to avoid adding further inflationary pressures, from the Employment Rights Act and new healthy food rules, to non-commodity charges which make up such a large proportion of energy bills.”

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