Retail sales slow as consumer confidence now lower than horsemeat scandal
Retail sales slowed last month as consumer confidence has taken a hit as shoppers feel the bite of rising cost inflation.
According to data from the British Retail Consortium (BRC) and KPMG, sales increased by 3.1 per cent in March. This was worse than a three-month average growth of 6.9 per cent.
What’s more, retail sales were down 0.4 per cent on a like-for-like basis from March 2021, when they were up 20.3 per cent, with hospitality shut.
Susan Barratt, CEO of grocery insights firm IGD, said it was “no surprise” that shopper confidence continues to drop. Confidence was now lower than a previous low of December 2013, in the wake of the horsemeat scandal, Barratt pointed out.
“There was a brief peak in confidence when it looked like oil prices might come down, but with 50 per cent of shoppers now expecting food prices to become much more expensive, this optimism was short-lived,” she added.
Don Williams, retail partner at KPMG, added: “Sales growth in March rose at the slowest rate so far this year, suggesting clouds on the horizon as household budgets come under pressure from rising costs, an increasing tax burden and competition from holidays. There is concern on what this could mean for consumer confidence and the impact on discretionary spend.”