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Rainfall washes out retail sales in March Rainfall washes out retail sales in March
(about 1 hour later)
UK retail sales fell by 0.9% between February and March with shops blaming wet weather for fewer shoppers. UK retail sales volumes fell by 0.9% between February and March with shops blaming wet weather for fewer shoppers.
Non-food retailers, in particular, said that rainfall affected sales with department stores and clothing shops reporting a drop in volumes. Department and clothing stores said they suffered particularly, in the sixth wettest March since 1836.
It was the sixth wettest March on record since 1836, according to the Met Office. Sales at food shops also fell, down 0.7%, following shortages of some products, official figures showed.
The retail figures were worse than expected and came after a rise in sales the month before. Many stores imposed limits on fresh produce such as tomatoes and cucumbers because of poor weather affecting supplies from Spain and North Africa.
The Office for National Statistics (ONS) also said that sales at food shops also fell, down 0.7%, following shortages of some products. The Office for National Statistics (ONS) said "26% of adults experienced shortages of essential food items that were needed on a regular basis" for much of March - an increase of the 18% who reported similar problems in February.
Many supermarkets imposed limits on fresh produce such as tomatoes, peppers and cucumbers because of poor weather in areas including southern Spain and North Africa.
The ONS said that "26% of adults experienced shortages of essential food items that were needed on a regular basis" for much of March. That was an increase of the 18% who reported similar problems in February.
The amount of food that people bought last month is 3% below pre-pandemic levels in February 2020, which retailers blamed on the increased cost of living and higher prices.The amount of food that people bought last month is 3% below pre-pandemic levels in February 2020, which retailers blamed on the increased cost of living and higher prices.
Despite the fall in sales during March, for the first three months of the year sales grew by 0.6% compared with the previous three months, the ONS said, which was the first rise in quarterly sales since August 2021.
Why are prices rising so much?Why are prices rising so much?
Food prices to fall soon, say UK supermarketsFood prices to fall soon, say UK supermarkets
Inflation - the rate at which prices are rising - hit 10.1% in March, mainly due to the increasing cost of food. The rate had been expected to fall below 10%.Inflation - the rate at which prices are rising - hit 10.1% in March, mainly due to the increasing cost of food. The rate had been expected to fall below 10%.
However, a drop in food production costs - which peaked in October last year according to the British Retail Consortium (BRC) - has not yet filtered into supermarkets.However, a drop in food production costs - which peaked in October last year according to the British Retail Consortium (BRC) - has not yet filtered into supermarkets.
The BRC said that it takes between three and nine months for falling prices to reach shops. But it said: "We expect consumer food prices to start coming down over the next few months."The BRC said that it takes between three and nine months for falling prices to reach shops. But it said: "We expect consumer food prices to start coming down over the next few months."
Despite the sharp fall in March, retail sales for the first three months of the year grew by 0.6% compared to the previous three months. Capital Economics said this is the first rise in quarterly sales since the April-to-June period in 2021. Analysts at Capital Economics said the rise in quarterly sales suggested "the 18-month retail 'recession' may have come to an end. Indeed, the more seasonable weather in April may support a rebound in sales this month".
It said that this suggests "the 18-month retail 'recession' may have come to an end. Indeed, the more seasonable weather in April may support a rebound in sales this month". However, it said sales could still be tempered by a further rise in the interest rate when the Bank of England next meets in May, putting further pressure on consumer spending.
However, Capital Economics said sales could still be tempered by a further rise in the interest rate when the Bank of England next meets in May, putting further pressure on consumer spending.
The Bank has been raising borrowing costs - which currently stand at 4.25% - to try to calm stubbornly high inflation.The Bank has been raising borrowing costs - which currently stand at 4.25% - to try to calm stubbornly high inflation.
How can I save money on my food shop?How can I save money on my food shop?
Look at your cupboards so you know what you have alreadyLook at your cupboards so you know what you have already
Head to the reduced section first to see if it has anything you needHead to the reduced section first to see if it has anything you need
Buy things close to their sell-by-date which will be cheaper and use your freezerBuy things close to their sell-by-date which will be cheaper and use your freezer
Read more tips hereRead more tips here
Related TopicsRelated Topics
RetailingRetailing
UK economyUK economy
ShoppingShopping
Office for National StatisticsOffice for National Statistics