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The fashion segment was the standout performer in the UK last month as consumers continued to splash out on new outfits post lockdown.
Fashion total like-for-like sales increased by 87 percent last month from a base of 57.5 percent the same month a year earlier. It was the only category to record positive non-store like-for-like sales in March.
Total like-for-like sales for the lifestyle segment also saw positive results, up 71.4 percent in March from a base of 14.7 percent for the equivalent month last year, while homeware like-for-like sales fell by 9.6 percent in March from a base of 112.6 percent in March 2021.
Overall like-for-like sales increased by 60.9 percent in March from a base of 42.5 percent for the equivalent month last year, marking the thirteenth consecutive month of positive results. However, total non-store like-for-like sales fell for the fourth time in the last five months.
BDO head of retail and wholesale Sophie Michael said in a statement: “Our results in March have highlighted that consumer spending remains high despite impending increases to the cost of living this month. However, there are also concerning signs that some of this spending is being supported by record levels of household borrowing, which has increased lately even as consumer confidence plummets.
“There may be good reason to expect some pull-back in discretionary spending over coming months, though the impact will inevitably vary across different areas of retail.”
Footfall improves in March
The increase in sales came as the footfall continued to gradually improve last month. Total UK footfall improved by 5.4 percent in March compared to the prior month. However, footfall was still 15.4 percent below March 2019 levels.
“March saw another gradual improvement to footfall levels across the UK,” said Helen Dickinson, the chief executive of British Retail Consortium. “As the first full month without coronavirus restrictions in England and Northern Ireland, consumers were able to shop with a greater sense of normality, spurred on by some spring sunshine.”
Despite the improvement, Dickinson warned that there remain difficulties ahead. “There are many challenges on the horizon as consumer confidence fell to its lowest levels in 16 months. Consumers are now feeling the effects of rising living costs, increased food and fuel prices, and are also anticipating higher energy prices from 1 April,” she said.
“The impact on retail footfall and retail sales across both stores and online is yet to be seen, but as belts continue to tighten and prices continue to rise, it will be a difficult road ahead for consumers.”
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