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Market Analysis

Easter Holiday Food Spending Boosts UK Retail Sales to Highest Level Since August
Amos Simanungkalit · 9.6K Views

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The British Retail Consortium reported a notable increase in retail sales last month, attributed largely to an early Easter which bolstered food spending. 


However, the overall retail landscape remained subdued due to dampened demand for various goods, notably affected by wet weather conditions. March saw a 3.5% year-on-year growth in total retail spending, a significant uptick from February's 1.1%, surpassing consumer price inflation for the first time in over two years. 


It's worth noting that these figures are not seasonally adjusted and were influenced by Easter falling unusually early on March 31, shifting certain sales patterns compared to the previous year.

Helen Dickinson, the CEO of BRC, acknowledged the improvement in retail sales, attributing it largely to the Easter timing and subsequent rise in food sales leading up to the holiday weekend. 


However, she pointed out that sales of items such as garden furniture, home improvement products, clothing, and footwear were hampered by the wet weather experienced throughout March.


Food sales showed a substantial increase of 6.8% compared to the previous year, while non-food spending experienced a decline of 1.9% over the first quarter. 


Additionally, data from Barclays revealed that overall consumer spending growth, a broader metric than retail sales, remained relatively stagnant at 1.9% in March, marking one of the lowest rates since September 2022. Despite events like the release of "Dune 2" in cinemas and festivities around St Patrick's Day and rugby fixtures providing some boosts, Karen Johnson, head of retail at Barclays, expressed optimism for future demand. 


Factors such as anticipated better weather conditions, reduced energy prices, higher wage growth, and upcoming events like Taylor Swift concerts and the Olympics are expected to drive consumer spending in the coming months.

 

 


Paraphrasing text from "Investing UK" all rights reserved by the original author.

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