Retail sales surge as warm weather and Mother’s Day boost spending
- Retail sales in the UK rose by 1.1% in March 2025, boosted by warmer weather and increased spending for Mother’s Day.
- Food sales increased by 1.6% and non-food sales grew by 0.6% compared to the previous year, though consumers remain cautious about large purchases.
- The rise in retail sales signals potential recovery in consumer confidence, despite ongoing economic challenges and competitive pressures among retailers.
In March 2025, UK retail sales experienced a notable increase of 1.1% year on year, driven primarily by positive factors such as the onset of warm weather and elevated spending related to Mother’s Day. The British Retail Consortium (BRC) and KPMG reported this growth as a sign of potential consumer confidence, despite the challenging economic landscape characterized by Trump's trade war and rising household costs. This is significant as March recorded retail sales growth comparable to the previous month, indicating a degree of resilience in consumer spending. Food sales rose by 1.6% in comparison to the same time last year, while sales of non-food items expanded by 0.6%. Specialty categories like gardening, DIY, jewellery, and beauty products saw heightened demand, particularly influenced by seasonal trends and gift purchases for Mother’s Day. However, not all areas experienced similar growth; there was a notable caution among consumers when it came to larger purchases, such as furniture, suggesting a lingering hesitance in the market. The BRC's chief executive, Helen Dickinson, noted the signs of “green shoots” of confidence among consumers, reflecting a shift towards increased spending on discretionary items. KPMG’s UK head of consumer, Linda Ellett, remarked on the impact of rising household expenses juxtaposed against the increased retail sales, highlighting that competition among retailers remains fierce, particularly in the non-food sector where some struggle more than others. Despite the overall growth, separate figures indicated that consumer card spending showed a more modest increase of 0.5% year on year, down from February’s 1%. This underscores the delicate balance of risk and opportunity that retailers face in a fluctuating consumer landscape. Barclays' assessment revealed significant shifts in consumer behaviour, with many looking to support local products in response to economic pressures, further complicating the retail environment. Overall, while March 2025 presented positive retail sales figures, the underlying currents of consumer caution and competitiveness remain apparent in the sector.