Retail sales volumes (quantity bought) are estimated to have risen by 0.4% in March 2025, according to the latest figures from the ONS. This follows a rise of 0.7% in February 2025 (revised down from a rise of 1.0% in our last bulletin).
Clothing and outdoor retailers reported that good weather boosted sales. These increases were partly offset by falls in supermarket sales.
Looking at the quarter, sales volumes rose by 1.6% in Quarter 1 (Jan to Mar) 2025, compared with Quarter 4 (Oct to Dec) 2024, and by 1.7% when compared with Quarter 1 2024.
Matt Jeffers, managing director, retail strategy & sonsulting at Accenture said: “Despite clearer skies and sunnier days, retail sales in March didn’t quite shine, with only a 0.4% rise against a high comparative base set by last year’s early Easter. While warmer weather encouraged spending on gardening supplies and Mother’s Day gifting lifted categories like beauty and DIY, those gains were partly offset by sharp drops in footfall across high streets and food store sales.
“The picture wasn’t all grey; strong performance in gifting and seasonal categories, like beauty, jewellery and clothing, showed shoppers are still willing to spend when the timing and value feel right. Looking ahead, capitalising on key moments like the spring bank holidays will be essential to regaining momentum.
“With margin pressures from rising labour costs, National Insurance Contribution changes, and new packaging rules mounting, retailers must stay laser focused. With consumer confidence remaining low, success will also depend on investing in seamless, friction-free customer experiences and ensuring offers remain simple, clear and compelling, removing barriers at every stage of the shopper journey.”
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “Yet another unexpected rise in retail sales may indicate a turning point for retailers. This marks a third consecutive month of sales growth for the first time since the summer of 2021. The retail sector is proving resilient, even with increasing costs for both businesses and consumers. The arrival of spring sunshine seems to be behind the uplift in sales, as wardrobes were updated and socialising outside the home encouraged spending both in store and online.
“While some consumers continue to be tactical in the way they spend, with more than half saying they cut down on luxuries and treats in the first quarter of 2025 compared to the previous three months, it is clear that there is appetite to start loosening the purse strings. With Easter to come in April’s figures, and hopefully further sunshine to encourage footfall onto the high street, we may see continued growth in the second quarter.”
Sagar Shah, Associate Partner at McKinsey & Company, comments: “Mother’s Day and the spring sunshine saw retail sales rise by 0.4% in March. A positive surprise given that Easter hopped over into April this year – meaning March didn’t benefit from the holiday lift. It also marks the largest three-month rise in sales volumes since July 2021 – a sign there is some underlying resilience in shopper behaviour and the big discounts in the early part of the quarter brought back consumers.
“Food sales saw a decline of 1.3%, likely due to people eating out and Easter not falling in March. But, we’d expect this to bounce back in April. Conversely, sales volumes in textiles, clothing, and shoes jumped by 3.7%, as people started getting ready for the spring.”
