The Office of National Statistics reported that retail sales in the United Kingdom fell unexpectedly in March. Between February and March, sales decreased by 0.9%, with non-food retailers such as department stores and textile stores suffering the most.
According to the Met Office, March was the sixth wettest month since 1836, which is believed to be the cause of the decrease in sales. This decline follows a month in which sales increased, making it an unexpected and unwelcome development for retailers.
“The sector is struggling to obtain meaningful traction,” said Richard Lim, CEO of Retail Economics, as the second quarter of 2019 got off to a very disappointing start.
Philip Hammond, the Chancellor of the Exchequer, stated that he is “monitoring” the data from the Office for National Statistics and will respond accordingly. He previously acknowledged the difficulties retailers confront and vowed to take action.
The British Retail Consortium (BRC) has also weighed in on the matter, with CEO Helen Dickinson stating, “It is evident that retailers are currently confronting challenging trading conditions. It is even more crucial that the government support businesses with a competitive business rate regime and an ambitious industrial strategy in light of heightened Brexit uncertainty and inflationary pressures.
The lacklustre retail sales figures for March are undoubtedly cause for concern, raising concerns about the impact of wet weather on retail sales and the sustainability of this downward trend. Government officials, economists, and the British Retail Consortium (BRC) are all closely monitoring and taking necessary measures to safeguard the UK economy and assist retailers in surviving these difficult times.
