Retail: Sixth wettest March on record dampens sales as shoppers’ fail to weather inflation hike
Retail sales fell 0.9 per cent in March as wet weather conditions and high inflation hit consumer spending during the month.
Despite Mother’s Day falling within the month retail, non-food sales such as clothing and homeware, fell by 1.3 per cent as the sixth wettest March on record since 1836 deterred shoppers from hitting the high street.
It follows a rise of 2.4 per cent in February, which was boosted by a lift in the public splashing out on Valentines Day presents for loved ones.
Within non-food stores, department stores and clothing stores sales volumes fell by 3.2 per cent and 1.7 per cent over the month, as the cost of living crisis limits consumers’ disposable income spending.
As supply issues with international food suppliers impacted grocery stock, food store sales volumes fell by 0.7 per cent in March 2023, following a rise of 0.6 per cent in February 2023.
Additional data from the ONS also found that in March 36 per cent of adults reported that they could not find a “replacement when the items they needed were not available” – up from 25 per cent in February.
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It comes as food inflation also hit record highs during the month with the price of kitchen staples and non-alcoholic drinks up 19.2 per cent, up from 18.2 per cent in the year to February 2023.
Lynda Petherick, head of retail at Accenture in the UK and Ireland, said: “After promising sales last month, this drop suggests that it’s back to reality for retail businesses, as they continue to weather a difficult environment. Not even Mother’s Day could keep sales moving in the right direction, with wet weather and continued industrial action creating additional headaches for retailers in March,”
She continued: “The challenging economic picture continues to persist. With inflation remaining above 10 per cent food prices still rising, and interest rates expected to increase again next month, shoppers will be keeping a close eye on their finances, putting further pressure on retailers to generate sales.”
Erin Brookes, managing director and head of retail in Europe at Alvarez & Marsal, added:“Retailers need to seize this opportunity, particularly ahead of the bank holidays and better weather to come, when customers should be in the mood to spend.
“To capitalise on the ‘once in a lifetime’ celebratory mood that will occur for the King’s coronation, it will be vital that retailers offer a well-defined value proposition, and a sense of fun and celebration in service offering and assortment.”