Retail sales recovery slows amid consumer concerns
April 13, 2022
The steady growth in retail sales that marked the start of the year is slowing with increasing concerns about consumer confidence - but there are indicators that furnishing is still holding up under the pressure.
The British Retail Consortium said total sales rose by 3.1% in March compared with the same month a year earlier, significantly down on the 6.7% increase in February and 12-month average growth rate of 10.3%.
Helen Dickinson, the chief executive of the BRC, said the rise reflected the surge in prices rather than a rush by consumers back to the shops after the easing of pandemic restrictions.
“The rising cost of living and the ongoing war in Ukraine has shaken consumer confidence, with expectations of people’s personal finances over the next 12 months reaching depths not seen since the 2008 financial crisis,” she said.
“Ultimately, consumers face an enormous challenge this year, and this is likely to be reflected in retail spend in the future.”
But the latest data from Barclaycard showed furniture stores continue to enjoy strong growth of nearly 20%, month-on-month, compared to the average rise in non-essential sales of 17.5%.
José Carvalho, Head of Consumer Products at Barclaycard, said: “Many sectors saw strong growth in March compared to the same period in 2019. However, rising fuel prices and household bills are clearly starting to influence consumer behaviour."
But Barclaycard said that despite this challenging backdrop, UK consumers' confidence in their own household finances remains steady at 62 per cent.
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