Non-food sales growth remains tepid, growing at under 1% so far this year, as consumer spending caution is heightened by the current and potential impact of the Middle East conflict.
According to the latest BRC-KPMG Retail Sales Monitor, UK Total retail sales increased by 3.6% year on year in March, against a growth of 1.1% in March 2025. This was above the 12-month average growth of 2.6%.
Food sales increased by 6.8% year on year in March, against a growth of 1.6% in March 2025. This was above the 12-month average growth of 4.3%.
Non-Food sales increased by 0.9% year on year in March, against a growth of 0.6% in March 2025. This was below the 12-month average growth of 1.1%.
In-Store Non-Food sales increased by 1.4% year on year in March, against a decline of 0.1% in March 2025. This was above the 12-month average growth of 1.1%.
Online Non-Food sales increased by 0.1% year on year in March, against a growth of 1.8% in March 2025. This was below the 12-month average growth of 1.0%.
The online penetration rate (the proportion of Non-Food items bought online) decreased to 37.6% in March from 38.1% in March 2025. This was above the 12-month average of 37.4%.
Helen Dickinson, Chief Executive at the British Retail Consortium, said: “An early Easter provided a much-needed boost to food sales as families came together over the long weekend. Non-food performance was more uneven: demand was robust for computers, toys, and homeware, but clothing and footwear continued to struggle. The disruption to international travel caused by the Middle East conflict also hit sales of travel-related goods.
“Retailers hope that the Middle East ceasefire will bring lasting stability, but the outlook remains uncertain. Damage to supply chains has already been done, and rising costs – from shipping and fertiliser to insurance and commodities – are piling yet more pressure onto already stretched retailers. Government must act decisively and boldly now to curb inflation by delaying domestic policies that would push prices even higher for shoppers.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said: “Despite this challenging trading landscape, monthly examples of category sales growth remain, with mobile phone and computing, beauty products and toys and baby goods all up in March. While margins remain under pressure on a number of fronts, retailers need to continue to focus on their month-to-month pricing and promotions, their supply chain resilience and delivering the technological transformation needed to set the foundations for growth.”
