Commenting on the Office of National Statistics retail sales index for March 2026, Jacqueline Windsor, Head of Retail at PwC UK, said:
“After rain washed out play during a decidedly lacklustre February, retail appeared to stage a partial rebound in March, with headline retail sales back into month-on-month growth of 0.7% following the previous month’s decline.
“However, compared with last March, seasonally adjusted retail sales volumes excluding petrol grew by only 1.7%, the weakest figure since last June. Once inflation is taken into account, pounds in the till grew by 4.1% versus last year.
“Amidst this, clothing retailers were a standout performer as a second March in a row of warmer, sunnier and drier weather helped new season’s collections that had been hampered by the colder, wetter February.
“Yet, despite that sunshine and an earlier start to school holidays compared with 2025, Britain’s high streets did not appear to benefit, as the proportion of sales made online increased from 28.2% in February to 28.7% in March, which is the highest penetration in almost five years.
“March caps the end of a better quarter of trading for many retailers after the relative disappointment of the ‘Golden Quarter’ from October to December last year. However, it is also the least important three months of most retailers’ year from a sales perspective, and comes before any real impact of the Middle East conflict.
“Looking ahead to the rest of 2026, there are already signs that consumer confidence is taking a hit, while several retailers have warned of higher prices later in the year, particularly in food and grocery. If consumers are forced to spend more on grocery, petrol and utility bills, they will inevitably be forced to rein back their discretionary spending. So, for most retailers, the first few months of this year are likely to be remembered as the calm before the storm.”
-Ends-
Notes to Editors:
Based on the 7am edition of ONS data released on 24th April here: https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/march2026
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