Retail sales rose in March driven by the warmer weather and families buying gifts for Mother’s Day, signalling that consumer spending could be strong over Easter, new figures show.
According to sales figures released by BRC today (15), total retail sales increased by 1.1 per cent year on year in March, against a growth of 3.5 per cent in March 2024. This was below the 3-month average growth of 1.6 per cent and above the 12-month average growth of 0.6%.
Food sales increased by 1.6 per cent year on year in March, against a growth of 8.3 per cent in March 2024. This was below the 3-month average growth of 2.3 per cent and below the 12-month average growth of 2.2 per cent.
Non-Food sales increased by 0.6 per cent year on year in March, against a decline of 0.4 per cent in March 2024. In-Store Non-Food sales decreased by 0.1 per cent year on year in March, against a growth of 0.1 per cent in March 2024.
Helen Dickinson, Chief Executive of the British Retail Consortium, 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.
"The improving weather made for a particularly strong final week, with gardening and DIY equipment flying off the shelves.
"Jewellery and beauty products were helped by Mother’s Day, though sales of bigger ticket items like furniture remained weak. 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 £5 billion pounds 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.
"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.”
Commenting on food and drink sector, Sarah Bradbury, CEO at IGD, said, “Shopper confidence fell from 4 to -2 in March after a brief boost in February.
"Rising geopolitical uncertainty and the imminent increases in household bills will have contributed to this decline.
"While half-term, Bank Holidays, and Easter may temporarily lift sales, the potential negative impact of U.S. tariffs and recession concerns are likely to keep confidence low. We may have already seen the peak for some time.”
