UK retail sales continued to recover in March, up 5.4% month-on-month

The latest data released by the UK National Statistics Office today showed that UK retail sales continued to recover in March 2021 , increasing by 5.4% month-on-month .

The growth reflects the impact of the easing of lockdown restrictions on consumer spending , with sales now 1.6% higher than in February 2020 , before the impact of the COVID-19 pandemic took hold .

It is reported that non-food stores contributed the most to the monthly sales growth in March 2021, thanks to strong growth of 17.5% and 13.4% in clothing stores and other non-food stores respectively .

In March 2021, the proportion of online consumption fell to 34.7%, down from 36.2% in February 2021, but still higher than 23.1% in March 2020. The value of online consumption did increase in March, but the growth rate of physical store consumption was faster. Excluding food, online non-food sales accounted for 39.5% of total retail sales.

In March 2021, online spending increased by 0.6% compared to February 2021, with textile, clothing and footwear stores posting strong growth of 10.9%. This was the largest monthly increase in the sector since June 2020 .

Feedback from retailers suggests that the impending easing of COVID-19 lockdown restrictions has prompted consumers to update their wardrobes in preparation for being able to meet up with friends and family outdoors again.

Gizem Günday, partner at McKinsey & Company, said: “Our analysis shows that we will not see a full return from online shopping to physical stores. In fact, 92% of consumers said they plan to continue spending online after the pandemic, with a strong desire to continue buying vitamins, over-the-counter medicines, content and clothing online. Retailers are scrambling to adapt to this shift in consumer behavior. Those companies that find a balance between the online and physical store experience will emerge stronger.”

In summary, UK retail sales are continuing to recover , and online retail growth remains strong , but for consumers , they can once again choose whether to shop online or in-store.

Therefore, what sellers need to do is to improve services and enhance consumers' shopping experience, which will be the key factors in retaining consumers who plan to continue buying online .

U.K.

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