Sunshine gave shops a much-needed boost last month – but economists have warned the good news is unlikely to last.
Retail sales increased by 0.4 per cent as Brits flocked to garden centres and restocked wardrobes.
The increase followed a rise of 0.7 per cent in volumes in February, although they remain below pre-Covid levels thanks to the spike in prices.
Sales rose 1.6 per cent quarter on quarter – the biggest increase in nearly four years, according to the Office for National Statistics (ONS) said.
However, experts cautioned that risks remain ‘firmly in play’, with businesses reeling from Labour’s huge national insurance raid and the fallout looming from Donald Trump’s trade war.
Retail sales volumes increased by 0.4 per cent in March as Brits flocked to garden centres and restocked wardrobes
ONS senior statistician Hannah Finselbach said: ‘Retail sales rose again in March for the third consecutive month.
‘The good weather helped to boost sales across a variety of sectors. Garden centres reported robust trading and the sunny weather also helped brighten sales of DIY goods and clothing.
‘Food sales, particularly within supermarkets again had a poor month.
‘The bigger picture shows retail sales are up across the quarterly and annual period, but are still a little below pre-pandemic levels.’
Kris Hamer, Director of Insight at the British Retail Consortium, said: ‘Sales continued to grow in March as the sunshine and warm weather encouraged people to spend more.
‘Clothing and footwear performed well as consumers sought to take advantage of the good weather and prepare for summer.
‘The sunny weather also gave a boost to garden supplies and DIY, as people spent more time outside.
The ONS said clothing made one of the biggest contributions to the increase last month
‘It was not all good news for retailers as the start of April unleashed over £5billion in costs from increases to employer NICs and National Living Wage.
‘This will rise to £7billion when the new packaging tax comes into effect later this year.
‘Furthermore, the upcoming business rates reform could see 4,000 shops paying even more in business rates, which would cost shops and jobs.
‘Government’s aim is to support high streets across the country, which is why they must ensure no shop pays more as part of their rates reform.’
