BRC-KPMG: Retail Sales Slow Further in March

The BRC-KPMG Retail Sales Monitor has reported on retail sales in March, advising of a 0.5% decrease in total sales and a 1.1% decrease in like-for-like sales in March 2018.

Top Line Figures 

TOTAL SALES: -0.5% (% change year-on-year)

LIKE-FOR-LIKE SALES: -1.1% (% change year-on-year)

TOTAL 3-MONTH AVERAGE: ALL CATEGORIES:  0.6% (% change year-on-year)

TOTAL 3-MONTH AVERAGE: FOOD: 1.3% (% change year-on-year)

TOTAL 3-MONTH AVERAGE: NON-FOOD: 0.1% (% change year-on-year)

Helen Dickinson OBE, Chief Executive, BRC: 

“Retail sales slowed in March, even when the Easter distortions were accounted for, as greater uncertainty caused people to hold off from splashing out. While jewellery, beauty products and clothing purchases were all up to indulge on Mother’s Day, shoppers were generally cautious not to overspend, particularly on larger items.

“Brexit continues to feed the uncertainty among consumers. For the sake of everyone, MPs must rally behind a plan of action that avoids no deal – and quickly – or it will be ordinary families who suffer as a result of higher prices and less choice on the shelves.”

Sue Richardson, Retail Director UK, KPMG: 

“March marked a truly disappointing end to the first quarter of 2019 for retailers. Not only did total sales fall 0.5 per cent compared to the same month last year, but no further clarity around Brexit came to light, and shoppers continue to waiver.

“Not all categories or channels suffered the same fate though, with clothing generally bagging a welcome reprieve thanks to more favourable weather – especially when compared to the Beast from the East this time last year.

“However other categories, mainly big-ticket items including furniture, remained overlooked. Online sales may have performed better than the high street, but the high proportion of sales occurring online actually nods towards the underlying issue of profit pressure.

“Retailers will be hoping for an end to this sustained uncertainty – it’s clearly not good for business – but times have already well and truly changed, and agility remains the best form of defence.”

Food & Drink sector performance, Susan Barratt, CEO, IGD: 

“The lateness of Easter in 2019 is the main factor behind the year-on-year fall in food and grocery sales for March. The underlying trend has been generally flat, indicating there has not been a high level of stock building by households.

“Although 62 per cent of shoppers are worried about the economy this is the same number as in summer last year. For the great majority, it has been food shopping as usual.”

Source : Insight DIY Team and BRC

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