FX.co ★ UK Retail Sales Beat Expectations in March

UK retail sales experienced a 0.9% increase on a like-for-like basis in March 2025, surpassing market expectations of a 0.5% rise. This growth was primarily fueled by unusually warm weather, which encouraged spending on gardening, DIY, food, and health and beauty products. Additionally, Mother's Day contributed to this positive trend, although the later timing of Easter this year affected year-on-year comparisons slightly. Food sales witnessed a 1.6% increase during March, while non-food sales registered a modest 0.6% rise. Helen Dickinson, Chief Executive of the British Retail Consortium, remarked, "Despite challenging global geopolitical circumstances, the slight uptick in both food and non-food sales indicates underlying demand resilience, particularly considering the tougher comparisons with March of last year, which included an earlier Easter." However, some analysts caution that this momentum might not be sustainable. Sales of high-ticket items remained sluggish, reflecting declining consumer confidence due to concerns over new US tariffs and recently announced UK tax hikes.