The wet weather dampened the enthusiasm of shoppers, and the increase in non-essential spending such as clothing was only 1.6%. This is the lowest rise since September 2012.
Barclays data shows that in-store retail sales, excluding groceries and clothing, declined by 2.1%.
The restaurant sector was particularly affected . In March, spending fell by 12.6% year-on-year, compared to a drop of 13.4% in February.
The hospitality industry has not suffered the same fate as restaurants. The release of DUNE: PART TWO led to the busiest cinema day in the year. Spending on that day was 87 percent higher than the monthly average.
The Six Nations rugby tournament, FA Cup football matches and St Patrick’s Day also helped to boost spending in pubs, bars, and clubs. In March, they saw a 3.2% increase in revenue compared to 1.1 % in February.
Data from the British Retail Consortium (BRC) and KPMG Retail Sales Monitor showed that the UK’s total retail sales increased by only 3.5 percent last month compared to 5.1 percent a year earlier.
The survey, which is in line with Barclays’ data, showed that there was a lackluster attitude towards the high street, as non-food in-store sales fell by 1.1% in the three-month period ending in March, while they grew by 5.2% in March 2023.
Online non-food sales fell by 1.4% year-on year in March, compared to a 2.1% decline a year ago.
Helen Dickinson is the chief executive officer of the British Retail Consortium. She said that after a challenging start to the year retailers hope the consumer confidence will rise with the warmer weather.
Data from Barclays’ current accounts, which consists of millions of customers, also suggests that UK housing costs are stabilizing. People spend 1.8 percent more on mortgages and rent payments in March 2023 than in March 2023, but this is still far below the 12.2 percent increase year-over-year in June 2023.
According to Barclays, not all consumers are confident about their ability to pay for mortgages or rental payments. Sixteen percent of consumers were not confident in their ability to pay their mortgages or rent payments, while 18% said that they were adapting their spending habits due to rising housing costs.