UK retail sales growth slowed in March as consumer confidence was dented by the rising cost of living and the war in Ukraine, according to a report from the British Retail Consortium (BRC)-KPMG.
Total sales grew 3.1% year-on-year in March, a much slower rate than the 13.9% jump in March 2021 and below the 12-month average growth of 10.3%.
“As consumer confidence continued to sink, March saw sales slow, and while spend remained above last year this likely reflects higher prices,” said BRC chief executive Helen Dickinson.
“The rising cost-of-living and the ongoing war in Ukraine have shaken consumer confidence, with expectations of people’s personal finances over the next 12 months reaching depths not seen since the 2008 financial crisis.
“Furthermore, households are yet to feel the full impact of the recent rise in energy prices and national insurance changes,“ she said.
UK retail sales dipped 0.4% on a like-for-like basis from March 2021, when they had increased 20.3%.
Don Williams, retail partner at KPMG, added that “retailers are facing their own battle with rising costs and inflation, and are walking a tightrope between absorbing rising costs themselves or passing these on to consumers”.