Retail sales rose again in March as shoppers stocked up for the early Easter bank holiday, data reveals.
The total sales in the UK shot up by 3.5% from last March, leaping ahead of the three-month average growth of 2.1% and the 12-month average of 2.9%.
As families prepared to host meals around Easter Sunday, food sales increased by 6.8% year-on-year in the five weeks leading to the end of March. This was below the 12-month average growth of 7.7%, but the British Retail Consortium’s (BRC’s) data shows food sales were still in growth year-on-year.
Sales of online non-food goods may have decreased by 1.4%, but this drop was shallower than the three-month drop of 3.1%.
The upturn in retail sales came ahead of the bank holiday, where Good Friday fell on 29 March, a week earlier than in 2023 and two weeks earlier than 2022. With retailers increasing their deals ahead of Easter, shop price inflation also dropped to its lowest level since 2021.
Despite non-food sales decreasing by 1.9% year-on-year, the “unusually early” bank holiday did help to prop up some non-food sales. Products including cookware and tableware saw a boost in purchases, according to Helen Dickinson, chief executive of the BRC.
Easter prep boosts grocery and home textiles sales
As well as a rise in sales for food-related items, Dickinson says purchases such as throws and pillows proved popular as households aimed to “spruce up their homes” for friends and family visiting.
But, she said: “Elsewhere, wet weather dampened the sales of garden furniture, BBQs, DIY products, and clothing and footwear.”
Following the previous damp month of February, in which customers kept away from the high street, Dickinson believes the future for retailers is indeed looking brighter.
Dickinson added: “After a difficult start to the year, retailers are hopeful that with warmer weather around the corner, consumer confidence will spring back up.
“Shoppers faced a multitude of financial changes this month, from the anticipation of ‘price hike Monday’ to the budget announcement that cut National Insurance for the second time in six months.”
Cautious approach by shoppers could return
However, Sarah Bradbury, the CEO of retail analyst IGD, thinks the spike in sales will ease as households continue to battle with the cost-of-living crisis.
Bradbury said: “At a total level, shoppers have a growing confidence in their financial outlook. However, the strength of this growth varies by household income. For lower-income households, confidence is growing at a slower rate despite news of an almost 10% increase to the national living wage.
“For all shoppers, we expect the cautious approach to continue as cost-of-living challenges remain.”
