...By Jack Sylva for TDPel Media.
According to new figures from the Office for National Statistics (ONS), retail sales volumes in the UK declined by 0.9% in March 2023, as Britons cut back on groceries or turned to cheaper alternatives.
The ONS data also revealed that sales in clothes shops, department stores, and garden centres were down.
Food sales were also affected by rampant food inflation, which has been weighing on shopping habits.
Subheading: Sales Decline Heavier than Expected
The decline in retail sales for March was more severe than expected, with economists predicting a 0.5% decline for the month.
This drop follows a 1.1% increase in sales volumes in February, which the ONS marginally downgraded from its original 1.2% growth figure.
Subheading: Poor Weather Impacts Sales Across Almost All Sectors
Darren Morgan, ONS director of economic statistics, attributed the March sales slump to poor weather that impacted sales across almost all sectors.
Despite this, Morgan stated that the overall trend is less subdued because of the strong performance of retailers in January and February.
The three-month picture shows positive growth for the first time since August 2021.
Commentary:
The UK retail sector has been hit by a double whammy of poor weather and rampant inflation, which have both contributed to the decline in sales volumes in March.
With food inflation remaining high, shoppers are turning to cheaper alternatives or reducing their grocery purchases altogether.
Furthermore, poor weather conditions during the month meant that many shoppers stayed away from clothes shops, department stores, and garden centres.
Despite the sharp decline in retail sales for March, the ONS director of economic statistics has pointed out that the broader trend is less subdued.
The strong performance of retailers in the previous two months means that there is still positive growth for the three-month period leading up to March.
It remains to be seen whether this trend will continue in the coming months, but the impact of inflation and weather conditions is likely to be a significant factor in the retail sector’s performance.
