UK DIY News
BDO: Retail Sales Collapse in March as Consumer Confidence Declines
Total retail sales in discretionary categories (fashion, homewares and lifestyle) remained flat at just +0.8% in March, representing a fall in sales volumes when taking inflation into account, according to the latest High Street Sales Tracker from accountancy and business advisory firm BDO.
March began positively, with the first two weeks of the month recording above inflation growth both on the high street and online. However, following the start of the conflict in the Middle East, growth started to falter in the third week of the month, with the fourth and fifth weeks recording declines of -3.04% and -7.74% respectively, compared with the same weeks in the previous year, reflecting the dramatic impact on consumer sentiment.
Current reports are showing that consumer confidence has fallen to its lowest level since April 2025 with warnings that food and fuel prices will soar by the end of the year.
Sophie Michael, Head of Retail and Wholesale at BDO, commented: “After a dismal few months, March started with a ray of hope for retailers, above-inflation sales growth on the high street for the first two weeks suggested some green shoots of recovery with Mother’s Day spending giving retailers a boost. But, this was a month of two halves and those hopes were quashed in the final two weeks of the month.”
“As the conflict in the Middle East continues, pressures are mounting with increased costs for fuel, energy and food. With consumers also facing rising mortgage rates and council tax bills, it is understandable that there is nervousness around discretionary spend, particularly with many still recovering or adjusting to the impact of the post-pandemic cost of living crisis.
“Heading into Easter and the school holidays which should have given a promising start to Spring, it is now clear that this is going to be a hugely painful period for retailers. They are navigating an already challenging trading environment, while facing further rises in National Minimum Wage and expanding employment rights, increasing labour costs, against a shrinking consumer purse and falling consumer confidence.
“These factors create a perfect storm, adding further pressure on sales, margins and investment across the sector.”
Source : BDO
Image : BDO
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