UK retail rises in March as Easter boosts sales

Retail sales in the UK rose in March, driven by the earlier timing of Easter that supported grocery and discretionary spending, according to industry figures. Broader measures of household spending showed weaker growth, with travel spending falling.

Figures from the British Retail Consortium showed like-for-like retail sales up 3.1% year-over-year in March, compared with a 0.7% increase in February. Total retail sales rose 3.6% year-over-year, up from 1.1% in February. The timing of Easter lifted grocery sales and helped demand for items such as toys, homeware and electronics.

Wider consumer spending was softer. Barclays reported overall consumer spending growth of 0.9% year-over-year in March, down from 1.0% in February. Travel-related expenditure fell 3.3% year-over-year, the first decline in that category since March 2021. Airlines and travel agents recorded the largest drops, and travel-related goods underperformed other retail categories.

Consumer surveys and indicators showed more households delaying major purchases and increasing their savings buffers. Higher fuel prices linked to the Iran conflict were cited as a factor raising travel costs and weighing on travel spending.

The March data display a divergence between headline retail turnover, supported by calendar effects, and weaker signals from broader household spending. Energy-related cost pressures were noted in the data as a factor affecting spending patterns across travel and other areas.