Mad March weather is 'mixed bag' for retailers

 
p5 LONDON, UNITED KINGDOM - MARCH 22: Commuters brave the cold weather as they walk across London Bridge on March 22, 2013 in London, United Kingdom. The UK is facing a day of severe weather disruption, with flood and snow warnings issued in a number of regions across the country. Forcasters have said to expect freezing temperatures and snow in London over the weekend.
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Staff|Agencies9 April 2013

The contrasting fortunes of Britain's retailers were highlighted today after the coldest March in 50 years froze sales of clothing and footwear but boosted demand for food and drink.

The British Retail Consortium (BRC) said sales grew by 1.9% in March on a like-for-like basis, weaker than February's 2.7% surge but a performance described as "encouraging" given the weather impact.

While clothing and footwear retailers endured a "dismal" month, food sales were up as families treated themselves over Easter and cold weather boosted the appetite for hearty meals.

BRC director general Helen Dickinson said: "Snow and the prolonged cold were not ideal but not a disaster. They brought mixed fortunes for different categories.

"2013 has got off to an encouraging start for the market as a whole. Retailers are now hoping for a boost in consumer confidence and the general mood to lift performance across all, not just some sectors, as we head into the second quarter.

"Getting a bit of sunshine, at long last, might help that along."

Across the whole of the January to March quarter, like-for-like retail sales increased 2.2%, with 1.9% non-food growth offset by 2.5% food growth.

Continued expansion by the retail sector will add to hopes the UK economy managed to eke out growth in the first quarter, thus avoiding a damaging triple-dip recession.

KPMG head of retail David McCorquodale said it may be the start of a positive trend for retailers, adding clothing and shoe stores will be "desperate for a change in weather in April".

The BRC said clothing and footwear were the worst-performing non-food categories in March and the only ones where sales declined, but did not break out specific figures.

Strong sales of slippers, Wellington boots, coats, gloves and knitwear were a rare bright spot. However, the BRC said retailers held off discounting new fashion ranges in the hope that consumers were "postponing rather than cancelling" purchases.

Marks & Spencer, one of the UK's biggest clothing retailers, is likely to be a major casualty of the big chill, and is expected to report falling clothing sales for the three months to the end of March on Thursday.

However, the retail bellwether's food sales are forecast to grow by 3%, as consumers continue to treat themselves and opt to eat in rather than dine out.

Upmarket supermarket chain Waitrose last week reported its best week outside of Christmas after sales increased by 14.8% on last year's Easter week to £140.7 million.

Roasts and oven chips were popular categories as shoppers sought out warming meals, the BRC said. Beer and ready meals were also big sellers, as shoppers stocked up for the Six Nations rugby tournament.

House textiles were the best-performing category, as sales of duvets boomed and Easter boosted table cloth sales.

Online sales were up 6.6%, but that growth was much slower than the 13.9% increase recorded in March 2012.

That was the slowest online growth since August, and the BRC said it may suggest shoppers are searching out items online but completing the purchase in-store, as well as spending less time online over Easter.

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