Colder spring weather and a late Easter holiday contributed to a decline in shop sales during March, new data has shown.
Latest monthly figures from the British Retail Consortium (BRC) show that sales fell 1.4% on the year in March. However, the comparison comes against strong totals from March 2005 when Easter sharply boosted sales.
This year’s late holiday, coupled with unseasonally cold weather, have hampered the high streets’ hopes for a sustained recovery from last year’s downturn in consumer spending, the BRC said.
Retail sales in the UK during March fell 1.4% on a like-for-like basis against a strong comparative in March 2005, when Easter had boosted sales.
Sales in clothing and footwear remained tough while food sales were static, the BRC said. Meanwhile, data shows that the home and leisure sector continued to struggle against weak consumer confidence, with sales growth primarily driven by discounting.
The three-month trend rate of growth also slipped last month, sliding from 0.9% in February for like-for-like sales to 0.3%. Total sales during the period also fell from 4.2% to 3.4%
“At first sight these figures are disappointing with negative like-for-like sales being seen for the first time in 2006,” said Helen Dickinson, head of retail at KPMG.
“However, they are heavily distorted by the impact of Easter which fell in March last year. Not only has this affected underlying sales trends but it has also influenced the timing of mid-season promotions.”
She said that analysts will have a better picture of the true state of the retail industry once they can assess March and April’s figures together.
“In the meantime, it has to be hoped that people understand the background to these figures and that the slight optimism which has started to build in recent months is not allowed to wither,” she said.
