Retail sales rise in March as shoppers hold their nerve

Despite concerns about slumping consumer confidence, retail sales volumes in the UK rose by 0.4% in March, marking the third consecutive month of growth.

According to the Office for National Statistics (ONS), both High Street and online sales saw increases, defying predictions of a downturn.

The sunny weather in March, which the Met Office reported as the sunniest March since records began in 1910, likely contributed to a surge in clothing and footwear sales, which jumped by 3.7%.

However, David Jinks, Head of Consumer Research at Parcelhero, suggests that the good weather alone doesn’t fully explain the positive results. “This was the third month in a row that sales increased,” Jinks notes, pointing out that overall sales rose by 1.6% in the three months to March 2025, compared to the previous three months.

Jinks adds that spending also increased, with total spending (both in-store and online) up by 0.3% from February. Online spending and volumes also grew, with non-store retailing, primarily e-commerce, rising by 2% in volume and value. “The amount we all spent shopping online rose by 2% over February and a whopping 5% year-on-year.”

While these results are encouraging for retailers, Jinks cautions that the full impact of measures announced in the Autumn Budget and potential consumer concerns about tariff actions are yet to be seen.

Online sales accounted for 26.8% of the total retail market in March, slightly up from 26.4% in February, maintaining a stable equilibrium between online and High Street sales.

Jinks emphasizes the importance of an omnichannel approach for retailers, as highlighted in Parcelhero’s report “2030: Death of the High Street”: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf