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UK Retail Sales Rise for Third Straight Month, Driven by Warm Weather

March saw a 0.4% increase in sales volumes, capping the strongest quarterly growth since 2021, though rising costs and geopolitical tensions raise concerns for the months ahead.

Overview

  • Retail sales volumes in Great Britain increased by 0.4% in March 2025, marking the third consecutive month of growth, according to the Office for National Statistics (ONS).
  • The first quarter of 2025 recorded a 1.6% rise in sales volumes, the largest quarterly increase since spring 2021, driven by strong performance in non-food categories.
  • Clothing and footwear retailers saw a 3.7% sales increase in March, with garden centres and DIY stores also benefiting from unseasonably sunny weather.
  • Food store sales fell by 1.3% in March, continuing a downward trend as supermarkets face intensified competition and price pressures.
  • Economists warn that rising business costs, including new taxes and wage increases, coupled with declining consumer confidence due to US tariff uncertainties, could hinder future growth.