UK
clothing stores experienced the strongest growth in March 2025 thanks to
favourable weather conditions with sales volumes climbing by 3.7%, according to
the Office of National Statistics (ONS).
Non-store retailing, which includes online retail also reported an upswing during the month with the positive performance in clothing and DIY goods sales attributed to good weather.
Specifically, online retailers specialising
in clothing and footwear enjoyed a 4.7% surge in sales.
However, ONS says this positive trend was
somewhat counterbalanced by a decline in sales at grocery stores.
Overall UK retail sales volumes also saw a modest increase with a 0.4% rise in
March 2025, which was again thanks to the favourable weather conditions
spurring purchases of clothing and outdoor products. This uptick followed
February’s 0.7% growth.
In a broader view of the retail landscape,
non-food stores, which encompass department stores, clothing retailers,
household goods outlets, and other non-food vendors, witnessed a 1.7% rise in
sales volumes over the month.
Department stores saw a more modest increase
of 0.3%, while non-store retailing overall grew by 1.9%.
However, not all sectors thrived; food store
sales dipped by 1.3%, and household goods stores experienced a 0.8% decline in
sales volumes.
Despite these declines, online spending
values rose by 2.0% from February to March 2025.
When comparing year-over-year figures for
March, there was a notable 5.4% increase in sales values.
However, when examining the first quarter of
2025 against the last quarter of 2024, online spending values slightly
decreased by 0.3%.
Overall spending — including both in-store
and online purchases — advanced by 0.3% over the month, leading to an increase
in the proportion of online sales from 26.4% to 26.8%.
Assessing quarterly performance, ONS data
shows that retail sales volumes from January to March 2025 went up by 1.6%
compared to the previous quarter and showed a year-over-year improvement of
1.7%.
British Retail Consortium’s director
of insight Kris Hamer:
“Sales continued to grow in March as the
sunshine and warm weather encouraged people to spend more. Clothing and
footwear performed well as consumers sought to take advantage of the good
weather and prepare for summer.
“It was not all good news for retailers as
the start of April unleashed over £5bn in costs from increases to employer
National Insurance Contributions (NICs) and National Living Wage. This will
rise to £7bn ($9.31bn) when the new packaging tax comes into effect later this
year. Furthermore, the upcoming business rates reform could see 4,000 shops
paying even more in business rates, which would cost shops and jobs.
Government’s aim is to support high streets across the country, which is why
they must ensure no shop pays more as part of their rates reform.”
Retail Economics head of commercial
content Nicholas Found:
“March offered glimmers of hope for
retailers, with warmer weather and longer evenings encouraging households to
spend on gardening and DIY, while Mother’s Day provided a timely boost for
beauty and gifting categories.
“But beneath these green shoots,
discretionary spending remains under significant strain. Affluent households
with savings have largely chosen to hold back on retail spending, reflecting
shifting priorities. Travel continues to outshine retail as households
prioritise experiences over goods, while big-ticket items like furniture remain
on the backburner.
“With consumers bracing for a fresh wave of
rising household bills, geopolitical tensions weighing on confidence and
Budget-related costs kicking in, retailers face an uphill battle to protect
margins, sustain investment, and navigate an increasingly complex trading
environment.
“The outlook is clouded further by
uncertainty around US trade tariffs, which has the potential to disrupt
shipments if orders are cancelled and routes impacted. For shoppers, the focus
remains firmly on value and carefully timed promotions, leaving big ticket
spending stuck in second gear.”
Wealth Club manager of the quality
shares portfolio Charlie Huggins:
“Retail sales volumes came in
better than expected in March with warmer weather boosting sales for
clothing, gardening and DIY goods.
“Although the weather will undoubtedly have
helped boost these figures, there is little indication that the UK consumer is
significantly cutting back. However, the weak food sales will be a concern to
supermarkets.
“The cost of the weekly food shop has risen
significantly in recent years, and Trump’s tariffs are unlikely to help. That
said, with Asda’s recent commitment to slash prices, perhaps it will be
supermarkets’ margins rather than consumers’ pockets that bear the brunt of the
pressure this time around.
For now, the UK consumer appears to be
holding up. But with employment costs rising and fierce competition, pressure
on retailers’ profit margins shows no sign of easing.”
Shopify managing director EMEA Deann
Evans:
“Retailers will be pleased to see sales
growth continue for the third consecutive month. Preparation for Mother’s Day
and the later Easter weekend is likely to have contributed, with our Shopify
data revealing that sales of Easter Egg Decorating Kits rose by 106% and
Chocolate by 37.1%, compared to February.
“The clocks changing, lighter evenings and
the flurry of upcoming bank holidays in April and May also boosted outdoor
spending for the second consecutive month. Sport items were also popular as
consumers took up new hobbies or returned to old ones, with Bicycles (34.3%),
Cricket Bats (31.5%) and Tennis Racket String (23.5%) amongst the highest
increases. Summer fashion was also a driver of March sales, with Chino Shorts
rising by a huge 530.9% compared to February – and tank tops (389.3%) and crop
tops (387.3%) close behind.
“As consumer spending continues to be
influenced by calendar shopping moments and the warmer weather, retailers will
be hoping the lighter evenings and late Easter bank holiday weekend continue to
drive sales in April and beyond. Ahead of then, there are valuable learnings
for retailers to take from recent months and ensure they are catering to
changing consumer behaviour whilst providing a seamless customer experience no
matter where they choose to shop.”
Intuit Mailchimp regional director
EMEA Jim Rudall:
“March was an important month for UK
retailers with Mother’s Day and preparations for Easter, so the industry will
be pleased to see the rise in sales figures. It can be a tricky month for
retailers and their marketing strategies given Mother’s Day can be a sensitive
time for some. Indeed, our Brand Trust report found that 52% of UK consumers
said they appreciate opt-out campaigns around emotive calendar days such as
Mother’s Day and Father’s Day. Retailers must keep in mind that building and
strengthening customer relationships is a year-round job, and one wrong turn
can potentially unravel that long-fostered relationship. Brands should take
learnings from thoughtful Mother’s Day campaigns and ensure they are using
mindful marketing initiatives throughout the year.
“Looking ahead to April, retailers will be
hoping the late Easter weekend continues to drive sales. To position themselves
for continued growth, brands must be strategic in how they connect with their
customers. Harnessing data to understand shopper behaviour can be particularly
effective, as retailers can use these insights to offer true personalisation at
scale. Our research revealed nearly two-thirds of UK consumers are happy to
share their data if they receive meaningful personalisation in return, so there’s
a real opportunity here. Brands should also seek to unlock the power of
multichannel strategies, such as combining email with SMS for maximum immediacy
and impact. The key is to meet consumers where they are through the most
appropriate channels, with messaging that feels relevant and responsive.”
Accenture managing director, retail
strategy and consulting Matt Jeffers:
“Despite clearer skies and sunnier days,
retail sales in March didn’t quite shine, with only a 0.4% rise against a high
comparative base set by last year’s early Easter. While warmer weather
encouraged spending on gardening supplies and Mother’s Day gifting lifted
categories like beauty and DIY, those gains were partly offset by sharp drops
in footfall across high streets and food store sales.
“The picture wasn’t all grey; strong
performance in gifting and seasonal categories, like beauty, jewellery and
clothing, showed shoppers are still willing to spend when the timing and value
feel right. Looking ahead, capitalising on key moments like the spring bank
holidays will be essential to regaining momentum.
“With margin pressures from rising labour
costs, National Insurance Contribution changes, and new packaging rules
mounting, retailers must stay laser focused. With consumer confidence remaining
low, success will also depend on investing in seamless, friction-free customer
experiences and ensuring offers remain simple, clear and compelling, removing
barriers at every stage of the shopper journey.”
By Just Style