Retail Sales, Great Britain: March 2022

22nd April 2022

Retail sales volumes fell by 1.4% in March 2022 following a fall of 0.5% (revised from a fall of 0.3%) in February 2022; sales volumes were 2.2% above their pre-coronavirus (COVID-19) February 2020 levels.

The largest contribution to the fall came from non-store retailing in which sales volumes fell by 7.9% over the month following a fall of 6.9% in February; despite these drops, sales volumes were 20.3% above their pre-coronavirus February 2020 levels.

Food store sales volumes fell by 1.1% in March 2022 and have fallen each month since November 2021; higher spending in pubs and restaurants linked to reduced coronavirus restrictions, as well as the impact of rising food prices on the cost of living are possible factors for reduced spending in food stores.

Automotive fuel sales volumes fell by 3.8% in March 2022 with other data sources indicating that some non-essential road travel had been reduced following record high petrol and diesel prices.

Non-food store sales volumes rose by 1.3% in March 2022 because of growth in other non-food stores (2.9%), and household goods stores (2.6%) such as DIY stores.

The proportion of retail sales online fell to 26.0% in March 2022, its lowest proportion since February 2020 (22.7%), continuing a broad downward trend since its peak in February 2021 (37.1%).

Retail sales volumes fell by 1.4% in March 2022, following a fall of 0.5% in February 2022 (revised from a fall of 0.3%). Retail sales values, unadjusted for price changes, fell by 0.2% in March 2022, following a rise of 0.4% in February. When compared with February 2020's pre-coronavirus (COVID-19) level, total retail sales were 2.2% and 10.1% higher in volume and value terms, respectively.

Compared with the same period a year earlier, sales volumes over the last three months rose by 5.4% while sales values rose by 13.8% reflecting an annual implied deflator (or implied growth in prices) of 8.4%. Percentage change over the past year should be interpreted with caution given the impact of coronavirus restrictions and base effects on growth rates for more information, read our blog post explaining base effects. For example, in March 2021 there were restrictions on non-essential retail in England and Scotland. Some restrictions on non-essential retail were lifted in Wales from 22 March 2022.

Food store sales volumes fell by 1.1% over the month to March 2022 and have fallen each month since November 2021.

Supermarkets reported a fall of 0.9% over the month, alongside falls in specialist food stores (such as butchers and bakers) of 0.7% and alcohol and tobacco stores, which fell by 11.3%.

Wider spending in pubs and restaurants may explain some of the fall. Data on UK spending on debit and credit cards based on clearing house automated payments system (CHAPS) payments made by credit and debit card payment processors, reported a further pick up in its "social" spending category (such as restaurants and pubs) between February and March 2022.

Affordability may also explain some of the fall in recent months. Results from our Opinions and Lifestyle Survey (OPN), covering the period 16 to 27 March, found that 87% of adults reported that their cost of living had increased over the last month. This was up from 83% in the previous period (3 to 13 March 2022) and up from 62% when this question was first asked (3 to 14 November 2021). The most common reason reported by adults who said their cost of living had increased was an increase in the price of food shopping (88%).

Fuel

Automotive fuel sales volumes fell by 3.8% in March 2022. This follows an increase of 3.8% and 3.7% in January and February 2022 after Plan B restrictions, which included asking people to work from home if they could, were lifted in England at the end of January 2022.

Average road fuel sales published by the Department for Business, Energy and Industrial Strategy reported a peak in demand on 24 and 25 February as Russia invaded Ukraine, which may have brought forward some fuel sales from March to February 2022.

Our Consumer price inflation March 2022 release reported record high petrol and diesel prices in March 2022, which may have reduced travel. Results from OPN covering the period 16 to 27 March found that of adults who said that their cost of living had increased, 39% were cutting back on non-essential journeys in private vehicles.

Non Food Stores

Non-food stores as a whole saw monthly sales volumes rise by 1.3% in March 2022 and are 2.0% above their pre-coronavirus levels of February 2020.

The sub-sector of other non-food stores reported a monthly increase in sales volumes of 2.9% in March 2022 because of strong growth in second-hand goods stores (particularly antiques stores and auctioning houses).

Household goods store sales volumes rose by 2.6% in March 2022 because of growth in DIY stores (4.9%) and furniture and lighting stores (4.7%).

Department stores reported a monthly fall of 0.1% in sales volumes while clothing stores sales volumes fell by 0.5%

Online Retail

the month-on-month and month-on-year (annual) growth rates for the amount spent online by value and the proportion of total retail sales value that was made online by sector. The percentage weights indicate where money is spent online. For example, 7.6 pence in every pound spent online was spent in department stores in 2021.

Online spending values fell in March 2022 by 6.0% when compared with February 2022 because of strong falls in non-store retailing (negative 10.4%) and other non-food stores (negative 9.6%).

The proportion of online sales fell to 26.0% from 27.5% in February 2022. This is a continuation of a broad falling trend since its peak in February 2021 (37.1%). Despite the ongoing trend, the proportion of sales made online is still above its level of 19.6% in February 2020 before the coronavirus (COVID-19) pandemic.

Read the full report at https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/march2022