LONDON, (MNI) – UK retail sales rebounded in March, with clothing
and other non-food sales boosted by the warm weather, according to the
British Retail Consortium survey.

The BRC/KPMG March data showed that after two consecutive
like-for-like year-on-year falls in January and February, sales rallied
in March, helped by both the sunshine and base effects from a weak
outturn in March 2011. Like-for-like sales were up 1.3% on the year and
total sales up 3.6%.

The most recent official retail sales data showed a sharp fall in
volumes in February, but the BRC figures suggest high street activity
recovered in the final month of the first quarter, and the sector could
still make a positive contribution to Q1 GDP.

The latest official data showed retail sales volumes fell 0.8% on
the month in February, the largest monthly decline since May 2011. On
the official series, if sales volumes were to rise 0.5%, for example, in
March, the retail sector’s Q1 growth would come in at 0.3% on the
quarter.

The BRC data showed average like-for-like sales values were up 0.3%
on the year in the three months through March, with total sales up 2.7%.

The BRC said “the unusually warm weather gave a good boost to sales
after two weak months,” with sales of the new spring and summer wear
ranges going well.

With the exception of December, year-on-year clothing sales value
growth in the BRC/KPMG series was the most robust since April 2011.
Footwear posted its strongest year-on-year growth since April 2007.

The timing of Easter provided favourable base effects, with the
national holiday falling in April 2011 but March 2010, resulting in a
3.5% year-on-year fall in March 2011.

Big ticket items this March saw falls, with furniture and flooring,
home accessories and house textiles all seeing declines.

Stephen Robertson, Director General, British Retail Consortium,
said “The unusually warm weather in March brought some welcome sunshine
into the lives of non-food retailers.”

“We’ll have to see whether this is additional spending or just
shopping which has happened earlier than usual,” he added.

Like-for-like sales are based on comparable floor space.

–London newsroom: +44 20 7862 7491; email: drobinson@marketnews.com

[TOPICS: M$B$$$,MABDS$]