Retail Sales, Great Britain: March 2021

23rd April 2021

The Office For National Statistics.

Retail sales volumes continued to recover in March 2021, with an increase of 5.4% when compared with the previous month reflecting the effect of the easing of coronavirus (COVID-19) restrictions on consumer spending; sales were 1.6% higher than February 2020 before the impact of the coronavirus pandemic.

Non-food stores provided the largest positive contribution to the monthly growth in March 2021 sales volumes, aided by strong increases of 17.5% and 13.4% in clothing stores and other non-food stores respectively.

Food stores reported monthly growth of 2.5% in March 2021, with strong growth in specialist food stores (butchers and bakers) likely reflecting the continued closure of the hospitality sector during the Easter period.

Automotive fuel retailers also reported strong monthly growth of 11.1% as travel restrictions were eased towards the end of the reporting period.

Despite strong March figures, retail sales for the quarter have been subdued overall; in the three months to March 2021, retail sales volume fell by 5.8% when compared with the previous three months, with strong declines in both clothing stores and other non-food stores as a result of the tighter lockdown restrictions in place.

The proportion spent online decreased to 34.7% in March 2021, down from 36.2% in February 2021 but still above the 23.1% reported in March 2020; the value of online spending did increase in March, but spending in-store increased at a faster rate.

The value of sales was 5.5% higher, and the quantity bought was up 5.4% when compared with February 2021. This signalled a continued recovery in the sector following the modest growth in February (2.2%), reflecting the effect of the easing of coronavirus (COVID-19) restrictions on consumer spending.

Estimates for both the amount spent and the quantity bought were higher in March 2021 than a year ago, when lockdown restrictions were first implemented. The amount spent increased by 7.3% and the quantity bought increased by 7.2% compared with the same month a year earlier.

Total retail sales levels for both the amount spent and quantity bought were lower than pre-pandemic levels in both January and February 2021, however, March marked a return to sales levels higher than those witnessed in February 2020, before the pandemic began, despite continued restrictions to non-essential retail.

The reporting period for the March publication covers 28 February 2021 to 3 April 2021; during this period there were widespread and extensive restrictions to non-essential retail in England, Scotland and Wales. However, some travel and social distancing restrictions were lifted at the end of March, as announced in roadmaps to ease restrictions.

Sales volumes increased in March 2021 by 5.4%, continuing the growth witnessed in February of 2.2%. The strongest growth was in clothing stores, other non-food stores and automotive fuel retailers of 17.5%, 13.4% and 11.1% respectively.

Whilst the 17.5% monthly growth in the clothing sector is a significant increase in sales volumes, they remain 41.5% below the level in February 2020 before the pandemic began. Feedback from retailers suggested that the impending relaxation of lockdown restrictions (meeting in private gardens and outdoor hospitality) had prompted the increase this month.

Within the other non-food store sector, the increase of 13.4% in March 2021 was driven by growth in a number of sectors including second-hand good stores, where auction houses reported an increase in sales of high-end items. Medical goods retailers also reported strong monthly growth of 29.4% with anecdotal evidence from retailers suggesting an increase in the purchase of mobility equipment from older consumers who were venturing out more following the vaccination rollout. Garden centres and retailers of plants and flowers reported monthly growth of 7.4%, with retailers reporting above average sales for this time of year attributed to an increased interest in gardening following lengthy lockdown periods.

Automotive fuel retailers witnessed an 11.1% growth in sales volumes in March 2021, the first monthly growth reported since a 0.1% rise in October 2020. Anecdotal evidence from retailers suggested the relaxation of travel restrictions on 29 March contributed to this. More analysis on sales volumes in the automotive fuel sector follows -

A closer look at automotive fuel
The volume of sales increased by 11.1% in March 2021 when compared with February 2021 in this sector. This was the first monthly growth in the volume of sales since October 2020 as travel restrictions once again had a strong negative effect on the sector, which has seen sales levels remain below those witnessed before the pandemic began.

The automotive fuel sector initially witnessed a severe fall in the volume of sales during the early coronavirus (COVID-19) pandemic period. Sales declined rapidly in March and April 2020, with consecutive monthly falls of 18.5% and 51.8% respectively.

There then followed three months of rapid recovery as travel restrictions were eased during late spring and summer 2020, however, the levels of sales did not recover sufficiently to reach those observed before the pandemic. Anecdotal feedback from retailers in the sector suggested that the government guidance to work from home and consequently the reduction in commuter traffic had the most impact on sales volumes.

Restrictions in several parts of the country were reintroduced in November 2020 leading to another large monthly fall in sales of 16.6%. The slowdown in the sector continued until February 2021 with four consecutive monthly declines as government guidance was changed to "stay at home".

A large monthly increase of 11.1% was seen in March 2021 as government guidance relating to travel was eased again on 29 March; feedback from retailers suggested that this easing of restrictions prior to the Easter period prompted a large surge in demand.

According to Department for Transport (DfT) non-seasonally adjusted road traffic data, the volume of all motor vehicle traffic on Monday 29 March 2021 saw a weekly increase of 4 percentage points to 84% of the level seen on the Monday of the first week in February 2020.

Read the full report HERE