Rainy days hit UK's retail recovery

A damp and, in some cases, snowy March kept people indoors

ONS figures showed a larger-than-expected fall in retail sales in March. Getty Images

Britain's gloomy weather is putting a dampener on the retail sector, with shops reporting a decline in sales volumes in March as rain kept people indoors.

The Office for National Statistics said retail sales volumes fell by 0.9 per cent last month as clothing shops, department stores and garden centres all reported declines.

Economists had predicted a decrease of 0.5 per cent for the month.

It comes after retailers reported a 1.1 per cent increase in sales volumes in February, with the ONS marginally downgrading its original 1.2 per cent growth figure.

England and Wales had their wettest March since 1981, according to the Met Office. It was also the sixth-wettest March in records dating back to 1836.

Friday's figures come days after the ONS revealed inflation in the UK fell to 10.1 per cent in March, from 10.4 per cent in the previous month.

Stubbornly high prices continue to weigh on British consumers, especially in the food sector.

But there was some relief in the sales figures - volumes rose by 0.6 per cent in the three months to March, when compared with the previous three months.

Darren Morgan, director of economic statistics at the ONS, said retail sales fell sharply in March as poor weather affected almost all sectors.

“However, the broader trend is less subdued as a strong performance from retailers in January and February means the three-month picture shows positive growth for the first time since August 2021," he said.

“In the latest month, department stores, clothing shops and garden centres experienced heavy declines as significant rainfall dampened enthusiasm for shopping.

“Food store sales also slipped, with retailer feedback suggesting the increased cost of living and climbing food prices are continuing to affect consumer spending.”

A survey by analyst GfK found consumer outlook was at its highest point in 13 months. It recorded an 8 point rise in consumer confidence in April compared to last month, reaching levels not seen since Russia's invasion of Ukraine. The measure of confidence came in at -30, compared to -38 in April last year and -31 in March 2022.