Fashion played a significant role in driving retail sales in the UK in March, as consumers eagerly prepared for the reopening of the country following the easing of lockdown measures. Official figures from the Office for National Statistics revealed that total retail sales volumes surged by 5.4% compared to the previous month, surpassing the expected increase of 1.5%. The value of sales also rose by 5.5%.
One key factor contributing to the surge in retail sales was the return of schools in England. Parents, after months of their children studying from home, bought new clothes and shoes in anticipation of the reopening of schools. As students returned to school, some parents were also able to return to the office, potentially supporting categories that had struggled throughout the past year.
Clothing emerged as a major beneficiary of the increased spending during the month. The ONS reported that non-food stores, particularly clothing stores, made the largest positive impact on sales volumes in March 2021, experiencing increases of 17.5% and 13.4% respectively. However, despite the significant increase in clothing sales, volumes remained 41.5% lower than they were in February 2020, before the pandemic hit. Retailers attributed this boost in sales to the anticipation of the relaxation of lockdown restrictions.
Although online shopping has been popular during the pandemic, the proportion of spending made online decreased from 36.2% in February to 34.7% in March, as consumers eagerly anticipated the reopening of physical stores. Nevertheless, online sales continued to grow, with department store e-sales experiencing a 37.7% year-on-year increase. Textile, clothing, and footwear stores also saw substantial growth compared to both the previous year and the previous month.
Industry experts view the March retail sales figures as a positive sign for the sector. Chris Daly, CEO of the Chartered Institute of Marketing, believes that the increase in sales positions non-essential shops favorably as they prepare to reopen, indicating that consumers are ready to spend. Ian Geddes, Deloitte’s head of retail, attributes the boost in clothing and footwear sales to the arrival of spring and the timing of new season collections. He also notes that some retailers reintroduced stock impacted by the previous lockdown, which he believes will not deter consumers, as many have adopted a more sustainable lifestyle during the pandemic and have been purchasing fewer new products.
Overall, the strong retail sales in March indicate a resurgence in consumer confidence as the UK prepares to emerge from the COVID-19 pandemic. The fashion industry, in particular, is poised to benefit from the reopening of physical stores and the pent-up demand for new clothing and accessories.
Useful links:
– BBC: UK retail sales rise 5.4% as lockdown eases
– The Guardian: UK retail sales boom in March as shoppers splash out vouchers
