The British Retail Consortium (BRC) has released retail sales data from the five weeks ending 30th March 2024, commenting that retail growth was “largely driven” by an early Easter.
According to the BRC, UK food sales increased by 6.8% on the year over the three months to March, against a growth of 8.5% in March 2023. This was below the 12-month average growth of 7.7%.
UK total retail sales increased by 3.5% year-on-year in March, against a growth of 5.1% in March 2023. BRC reported that this was above the 3-month average growth of 2.1% and the 12-month average growth of 2.9%.
Helen Dickinson OBE, chief executive of the BRC, said: “While retail sales growth improved last month, this was largely driven by Easter falling unusually early and the subsequent uplift to food sales in the week preceding the long weekend.
“After a difficult start to the year, retailers are hopeful that with warmer weather around the corner, consumer confidence will spring back up. A strong retail industry can boost investment across our towns and cities, and as we gear up for a general election, it is essential the next Government recognises this and rethinks the burdensome costs imposed on retailers.
“With a pro-growth policy landscape, retailers can step up their investment in innovation and in local jobs and communities up and down the country.”
Shopper confidence grows slowly
Sarah Bradbury, CEO of the Institute of Grocery Distribution (IGD), said: “The UK grocery market benefitted from Easter falling in March this year. This has led to very positive comparisons with spending increasing on March 2023, and importantly significant volume growth. This marks the fourth consecutive month of year-on-year volume growth, offering hope to retailers and suppliers of finally being able to regrow margins that have shrunk during the cost-of-living crisis.
“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. 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.”
