Food sales increased 6.8% in the three months to March as the grocery market benefitted from Easter falling earlier this year.
According to the latest data from the British Retail Consortium (BRC), while this figure was below the 12-month average growth of 7.7%, food was in growth year on year for the month of March.
Total UK retail sales were also up 3.5% year on year last month, above the three month average growth of 2.1% and above headline inflation for the first time in more than two years.
BRC chief executive Helen Dickinson said these improved retail sales were “largely driven by Easter falling unusually early and the subsequent uplift to food sales in the week preceding the long weekend.”
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IGD CEO Sarah Bradbury added: “This marks the fourth consecutive month of year-on-year [grocery] volume growth, offering hope to retailers and suppliers of finally being able to regrow margins that have shrunk during the cost-of-living crisis.”
However, KPMG UK head of consumer markets, leisure and retail Linda Ellett said that “retailers will be hoping that the bounce back of March sales is more than just an Easter blip,” as April “signals big increases in the sector’s cost base – through the rise in minimum wage rates and business rate hikes for the larger high street brands”.
“As we head into the warmer months, retailers will be hoping that stronger consumer confidence will turn into stronger retail sales.”
