The Office for National Statistics revealed a 0.4% increase in retail sales in March 2025 following a 0.7% rise in February. Notably, non-food sales surged 1.7%, with clothing sales rising by 3.7%. Despite a drop in food sales by 1.3%, the results exceeded expectations of a 0.4% decline. Charlie Huggins from Wealth Club pointed out that while warmer weather encouraged spending, the weakness in food sales could concern supermarkets. He noted the increased pressure on retailers due to high operational costs and competitive pricing strategies.
Retail sales volumes came in better than expected in March with warmer weather boosting sales for clothing, gardening, and DIY goods.
Although the weather will undoubtedly have helped boost these figures, there is little indication that the UK consumer is significantly cutting back.
The cost of the weekly food shop has risen significantly in recent years, and Trump's tariffs are unlikely to help.
For now, the UK consumer appears to be holding up. But with employment costs rising and fierce competition, pressure on retailers' profit margins shows no sign of easing.
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