Retail sales see first quarterly decline since 2013
Published: 24 April 2017 - Jenny Wonnacott
Sales were down 1.4% for the three months to March, marking the first quarterly decline since 2013 according to the Office for National Statistics.
The decline in sales is thought to be due largely to price increases across all sectors
The quantity bought in the retail industry for March 2017 is estimated to have increased by 1.7% compared with March 2016, and decreased 1.8% compared with February 2017, with decreases seen across the four main store types.
For stores falling under the 'household goods' category, quantity bought was down 3.3% on a quarterly basis, and down 1.5% compared with the same period last year. The amount spent was down 2.6% on the previous three months, and down 0.6% compared with last year. This retail category showed the largest decline in terms of volume and value compared with all other retail categories.
Average store prices increased by 3.3% on the year, marking the largest growth since March 2012. Online sales increased year-on-year by 19.5% and by 0.5% on the month, accounting for approximately 15.5% of all retail spending.
ONS senior statistician Kate Davies said: “Today’s retail sales figures show a decline on the month and on the three months to March, which coincides with quarter one in 2017. This is the first time we’ve seen a quarterly decline since 2013, and it seems to be a consequence of price increases across a whole range of sectors.”
Phil Mullis, partner and head of retail and wholesale at top-20 UK accountancy firm, Wilkins Kennedy, said: “Despite a spending increase year on year of around 5.1%, the amount spent actually dropped during March 2017. Even though retail events such as Mother’s Day could lead to expectations of sales increases, it was not enough.
“We also have to bear in mind that, compared to last year, Easter was held a month later – so any sales that were made during March 2016 for Easter would have been put back to April this year, and may be an explanation as to why the figures seem to have dropped.
“The trend is heading downwards overall as retailers are under pressure to keep prices keen for their customers. It will be interesting to see how the recent announcement relating to a snap general election will affect April retail sales, and if there will be an overall impact on customer confidence.”