The amount British retailers sold remained unchanged last month, as a rise in petrol and diesel sales helped offset falls at department stores and food shops
The British retail sector remained steady in March, with a surge in fuel sales balancing out declines at department stores and food shops.
According to the Office for National Statistics (ONS), more people were visiting petrol stations nationwide, leading to the highest level of automotive fuel sales since May 2022, with volumes up by 3.2%. The ONS data revealed that overall retail sales growth was recorded at 0%, down from 0.1% growth in February.
The statisticians have revised February’s retail sales volumes reading from an earlier estimate of 0%. In the first quarter of 2024, retail sales volumes rose by 1.9%, compared with the last quarter of 2023.
“Retail sales registered no growth in March,” said Heather Bovill, ONS senior statistician. “Hardware stores, furniture shops, petrol stations and clothing stores all reported a rise in sales. However, these gains were offset by falling food sales, and in department stores where retailers say higher prices hit trading.”
Bovill also noted: “Looking at the longer-term picture, across the latest three months retail sales increased after a poor Christmas.” The ONS highlighted that its data had tracked rises in sales at second-hand goods shops, hardware shops and furniture and clothing stores.
Food stores experienced a 0.7% drop in sales, while non-food store sales saw a slight increase of 0.5%. Non-store retailers, which include online shops and market stalls among others, witnessed a 1.5% decrease in sales. Lisa Hooker, an expert at consultancy PwC, cautioned that the March figures should be “taken with a pinch of salt” due to the early occurrence of Easter this year, despite the ONS’s attempts to adjust for this.
“While supermarkets benefitted from the earlier Easter, the slighter warmer weather and additional bank holidays encouraged more consumers back to hospitality with stronger restaurant and pub performance,” she said. “Easter chocolate sales were subdued with the impact of chocolate price inflation and new health regulations meaning promotional displays had to be less prominent in stores.”
She further added: “What is clear is that the first quarter of the year has been disappointing for many retailers. Lower inflation and the first 2% cut to National Insurance which was felt in January’s pay packets has yet to translate into a sustained recovery in spending.”
