Retail sales fall 0.4% in March
Retail sales fell in March
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Thursday, 24, Apr 2008 09:47
Retail sales fell 0.4 per cent from February to March, reflecting falls in all sectors except household goods, according to the latest figures.
But data from the Office for National Statistics (ONS) found sales rose for the three months to March by two per cent over the previous quarter.
The average weekly value of retail sales in March was £5 billion, 4.4 per cent higher than March 2007.
Food sales were 6.6 per cent higher during the quarter compared to last year, while sales from non-food stores were 3.6 per cent higher compared to last year.
March sales were expected to be down after a poor Easter, as bad weather and the credit crunch kept consumers away.
The retail industry has been under pressure from falling demand and rising costs. Several retailers reporting results have admitted a decline in profit growth, while budget clothes chain Ethel Austin has gone into administration.
Industry group Retail Think Tank (RTT) said although trading conditions have been weak, the first quarter was not as bad as forecast and "we should guard against talking ourselves into a worse state than it would otherwise be".
According to remarks from RTT's last meeting, "retail has caught 'flu, not pneumonia".
However, the group did acknowledge sales were likely to deteriorate further and margins will continue to stay under pressure from rising costs.
Vicky Redwood of Capital Economics said: "Overall, the tough start to the year looks set to become even more entrenched as we go forward into the second quarter.
"Demand is the most influential and this quarter's strongest variable, so the RTT is keen to stress that although the situation is serious it's certainly not yet critical and talking it down will help no-one, least of all retailers."