retail

Britons scoop up clothes and gardening products to boost retail sales

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Retail sales in Great Britain grew more than forecast last month as shoppers bought more clothes and gardening products ahead of the relaxation of some Covid-19 restrictions.

Retail sales rose 5.4 per cent in March compared with the previous month, data from the Office for National Statistics showed on Friday.

That was a much stronger reading than the 1.5 per cent forecast by economists polled by Reuters and followed an expansion in February, even as non-essential stores have been shut since early January.

Separate data by the research company GfK showed on Friday that consumer confidence rose further, to the highest level since before the first lockdown in April, supporting the view that more optimistic shoppers will continue to spend as businesses reopen.

“Specialist food stores, such as bakers and butchers, saw increased sales as the continued closure of hospitality saw customers buying produce for Easter festivities at home,” said Darren Morgan, ONS director of economic statistics.

Line chart of Great Britain, volume index showing Retail sales grew more than expected in March

He added that “the approaching spring enticed people into garden centres, which had a good month, while clothing sales sprung back to life as people looked to update their wardrobe in anticipation of lockdown easing”.

With increased mobility, petrol sales rose 11 per cent in March compared with the previous month.

Non-food stores provided the largest positive contribution to the monthly increase in sales volumes, with clothing stores registering 17.5 per cent growth.

Retail sales climbed 1.6 per cent compared with February 2020, before the pandemic struck, as consumers switched from services such as gym memberships to goods such as fitness equipment.

The proportion spent online remained high at 35 per cent, well above the 23 per cent figure in March last year.

Since the reopening of non-essential stores and the hospitality sector on April 12, measures of mobility to retail centres have jumped, suggesting pent-up demand will boost spending and economic growth from the second quarter.

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