Food sales gave UK retail a welcome lift in March as Easter gatherings, Mother’s Day and Eid encouraged households to spend more on celebratory occasions, but wider shopper confidence remains fragile.

According to the latest BRC-KPMG Retail Sales Monitor, total UK retail sales increased 3.6 per cent year on year in March, up from growth of 1.1 per cent in the same month last year and ahead of the 12-month average of 2.6 per cent.

Food was once again the main driver of that growth, with sales rising 6.8 per cent year on year, well above the 12-month average of 4.3 per cent.

The figures suggest seasonal events played a key role in driving spending, with families coming together over an early Easter weekend and other spring occasions boosting supermarket demand.

By contrast, non-food sales remained far more subdued, rising just 0.9 per cent year on year and continuing the pattern of cautious discretionary spending seen so far this year.

Helen Dickinson, chief executive of 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.”

The latest figures add to a growing sense that grocery and essentials are continuing to carry the wider retail market, even as households remain hesitant elsewhere.

Earlier consumer spending data from Barclays also pointed to a cautious backdrop, with overall card spending up just 0.9 per cent year on year in March. Essential spending returned to growth, rising 0.5 per cent for the first time since July, while travel spending fell 3.3 per cent as consumers delayed trips or switched to staycations.

That caution is increasingly being linked to the conflict in the Middle East and the knock-on effect it is having on fuel, shipping and supply chain costs.

Linda Ellett, UK head of consumer, retail and leisure at 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 per cent 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.”

Industry leaders also warned that the strong March food performance should not be mistaken for a broader easing of pressure across the grocery market.

IGD chief executive Sarah Bradbury said the conflict in the Middle East is already feeding directly into household costs, with petrol prices up by around 18 per cent at the pump compared with before the conflict began.

She added that shoppers are becoming increasingly worried about the wider impact on heating bills, food prices and interest rates.

Bradbury said: “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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