UK total retail sales increased by 3.6% year-on-year in March, compared to a growth rate of 1.1% in March 2025. This figure exceeds the 12-month average growth rate of 2.6%.
Food sales rose by 6.8% year-on-year in March, while in March 2025 they grew by only 1.6%. This increase also exceeds the 12-month average growth of 4.3%.
Non-food sales increased 0.9% year-on-year in March, up from 0.6% in March 2025, but below the 12-month average of 1.1%.
In-store non-food sales climbed by 1.4% year-on-year in March, reversing a decline of 0.1% reported in March 2025. This growth is above the 12-month average of 1.1%.
Conversely, online non-food sales increased by only 0.1% year-on-year in March, whereas in March 2025 they grew by 1.8%. This current rate falls below the 12-month average growth of 1.0%.
Additionally, the online penetration rate, which denotes the proportion of non-food items purchased online, decreased to 37.6% in March from 38.1% in March 2025. However, this figure is still above the 12-month average of 37.4%.
Helen Dickinson, Chief Executive at the British Retail Consortium, said: “An early Easter provided a much-needed boost to food sales as families came together over the long weekend.
“Non-food performance was more uneven: demand was robust for computers, toys, and homeware, but clothing and footwear continued to struggle. The disruption to international travel caused by the Middle East conflict also hit sales of travel-related goods.
“Retailers hope that the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain. Damage to supply chains has already been done, and rising costs – from shipping and fertiliser to insurance and commodities – are piling yet more pressure onto already stretched retailers.
“Government must act decisively and boldly now to curb inflation by delaying domestic policies that would push prices even higher for shoppers.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said: “Food and drink continue to drive monthly retail sales growth, with inflation a key factor. Non-food sales growth remains tepid, growing at under 1% so far this year, as consumer spending caution is heightened by the current and potential impact of the Middle East conflict.
“Despite this challenging trading landscape, monthly examples of category sales growth remain, with mobile phone and computing, beauty products and toys and baby goods all up in March.
“While margins remain under pressure on a number of fronts, retailers need to continue to focus on their month-to-month pricing and promotions, their supply chain resilience and delivering the technological transformation needed to set the foundations for growth.”
Food & Drink sector performance | Sarah Bradbury, CEO, IGD, said:
“The conflict in the Middle East is having an immediate impact on costs with petrol prices up by around 18% at the pump compared to before the conflict began. Expectations are that the conflict will continue to increase cost pressures, with rising risks to heating bills, food prices and interest rates. As a result, shopper confidence has dropped to the lowest level since 2023. While occasions such as Mother’s Day and Eid provided moments of celebration, they were not enough to offset growing shopper concerns about rising costs. The months ahead will therefore be challenging for both shoppers and the food and drink industry.”
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