Retail sales see biggest rise since 2021

UK retail sales rose at their fastest pace in nearly four years during the first quarter of 2025, thanks partly to sunny weather in March.

According to the Office for National Statistics (ONS), sales volumes increased by 1.6% between January and March compared to the previous quarter – the most significant quarterly rise since July 2021.

March alone saw a 0.4% rise in sales, outperforming analyst expectations of a 0.4% fall. The sunshine boosted footfall at garden centres, while clothing and DIY goods sales also improved.

Sales at non-food stores climbed by 1.7% in March, though this was partially offset by a 1.3% drop in food store sales. The ONS noted that supermarket sales, in particular, were weaker.

Despite the upbeat March figures, analysts have warned that the outlook may be less favourable in the coming months.

The report highlighted growing concerns about rising household bills and the general state of the economy, which could lead to reduced spending.

While the latest data suggests a strong start to the year for retailers, the dip in confidence may weigh on future sales growth. As household budgets come under pressure, the sustainability of the recent retail bounce remains uncertain.

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