UK Retail Sales Surprisingly Drop

UK retail sales volumes rose 0.7% month-on-month in March 2026, rebounding from a revised 0.6% drop in February and exceeding expectations of a 0.2% rise. The recovery was largely supported by increased fuel purchases, with retailers noting that motorists were stocking up amid the war in the Middle East. Excluding automotive fuel, retail trade rose 0.2%. Meanwhile, non-food stores increased 0.7%, led by stronger clothing sales amid improved weather. Auction houses and computer and telecom retailers also performed well, supported by new product launches, while non-store retailers rose on spring promotions and new releases, with volumes reaching their highest level since February 2022. In contrast, commercial art galleries declined after strong gains in January and February. On a yearly basis, retail sales rose 1.7%, slightly easing from a 1.8% increase in February but still exceeding forecasts of a 1.3% gain.

UK retail sales volumes fell 0.4% month-on-month in February 2026, following an upwardly revised 2% jump in January, but smaller than the expected 0.7% decline. This marked the first monthly drop in three months, as sales at supermarkets and household goods stores fell, with retailers citing wet weather and above-average rainfall as dampening demand. Non-store retailers, mainly online, also saw a slight decline, as shoppers reportedly brought forward purchases to January to take advantage of seasonal discounts. The retail dip comes ahead of broader economic pressures, including rising energy costs and geopolitical uncertainty. On an annual basis, retail volumes rose 2.5%, down from January’s 4.8% surge, while sales over the three months to February increased 0.7% compared with the previous period.

UK retail sales volumes rose by 1.8% month-on-month in January 2026, comfortably surpassing market expectations of a 0.2% increase and accelerating from a 0.4% gain in December. It marked the strongest monthly growth since May 2024, as interest rate cuts and easing inflation likely lifted consumer confidence across British shopping districts. It was also the first back-to-back increase in six months, offering a welcome boost to the Labour government’s efforts to revive the economy. Growth was driven by strong demand in non-food stores, particularly for artwork and antiques. Online and mail-order retailers also performed well, with sports supplements and jewellery sales reaching notably high levels. On an annual basis, retail sales volumes climbed to a near four-year high of 4.5%, from a revised 1.9% in December and above the expected 2.8%. Over the three months to January, sales volumes edged up 0.1% compared with the previous three-month period and were 2.6% higher than a year ago.