UK retail sector bounces back in March

In the three months to March 2019, the quantity bought in retail sales increased by 1.6% compared with the previous quarter in 2018, according to new figures from the ONS. The sales increase has been attributed to “sustained growth” throughout the first three months of the year, and all store types, except department stores and household goods stores, increased in the quantity bought in the three months to March 2019, when compared with the previous three months. The monthly growth rate in the quantity bought during the month also increased by 1.1%, with food stores and non-store retailing providing the largest contributions to this growth. Additionally, year-on-year growth in the quantity bought increased by 6.7% in March, the highest since October 2016, with a range of stores noting that the milder weather this year helped boost sales. Department stores were the only store type to decrease in the quantity bought when compared with March 2018, with a fall of 0.3% in March 2019. Online sales as a proportion of all retailing increased to 18.6% in March 2019, from the 18.1% reported in February 2019. Founder and CEO of Yomdel, Andy Soloman, said: “Extremely positive signs for a sector that has struggled to keep its head above the water of late due to a combination of escalating ground rents, business rates and a swing in consumer preference towards the convenience of online shopping. “That said, the online shopping sector continues to grow in size where its proportion of all sales is concerned. While the bricks and mortar space has enjoyed some positive growth, it’s important it doesn’t rest on its laurels and continues to innovate and evolve to appeal to the ever-changing taste of the modern day consumer.” He added: “However, all in all with yesterday’s inflation numbers being so positive, almost full employment, low mortgage rates and wage growth buoyant, these inspiring retail sales numbers further contribute to what can only be described as a sound economic base.”