Retail sales slide as UK consumer confidence sinks to record low
Growth in UK retail sales slowed last month as fears over the rising cost of living led to the sharpest drop in consumer confidence since the 2008 financial crisis, according to industry data.
The British Retail Consortium said total sales rose by 3.1% in March compared with the same month a year earlier, significantly down on the 6.7% increase in February and 12-month average growth rate of 10.3%.
Comparing March with the same month in 2019 before the Covid pandemic spread, total sales rose by 5.4%, as retailers warned rising inflation was beginning to hurt consumer spending.
Helen Dickinson, the chief executive of the BRC, said it was likely that strength in the total value of retail sales reflected the surge in prices rather than a rush by consumers back to the shops after the easing of pandemic restrictions.
“The rising cost of living and the ongoing war in Ukraine has shaken consumer confidence, with expectations of people’s personal finances over the next 12 months reaching depths not seen since the 2008 financial crisis,” she said.
“Ultimately, consumers face an enormous challenge this year, and this is likely to be reflected in retail spend in the future.”
The latest snapshot compiled by the retail industry showed a rise in spending on beauty and fashion items before Mother’s Day – 27 March – while the fact that people were gradually returning to town and city centres was leading to an uptick in demand for clothes.
However, spending on food dropped by 6.1%, possibly due to a later Easter compared with a year earlier, and as consumers returned to eating out in restaurants and pubs after the Omicron variant had weighed on demand.
Susan Barratt, chief executive of the research organisation IGD, said the prospect of soaring
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