By David Milliken
LONDON, April 11 (Reuters) - British retailers reported
a boost in spending from Mother's Day purchases in March, during
an otherwise downbeat sales period when cost of living pressures
and unusually wet weather kept shoppers at home.
The British Retail Consortium (BRC) in a report on Tuesday
said that its members - mostly large chain stores and
supermarkets - reported a 5.1% year-on-year increase in retail
spending in March, down a shade from annual growth of 5.2% in
February.
In real terms, this represents a sharp fall in the volume of
goods purchased, as consumer price inflation ran at 10.4% in
February, the most recent official data shows.
Like-for-like sales, which strip out changes in retail
space, rose by 4.9%, the same as in February.
"While the wettest March in over forty years dampened sales
growth for fashion, gardening and DIY products, Mother's Day
brightened up sales for the month," BRC Chief Executive Helen
Dickinson said.
Mother's Day was marked in Britain on March 19 this year,
and saw last-minute purchases of jewellery, perfume and flowers,
the BRC said.
British consumers have been pressured for more than a year
by high inflation which has outstripped pay growth for almost
all workers. Last month government forecasters estimated
households were in the midst of the biggest two-year squeeze in
living standards since comparable records started in the 1950s.
Barclays reported that consumer credit and debit card
spending in March was 4.0% higher than a year earlier, down from
growth of 5.9% in February.
Spending on utilities was 39% higher than a year earlier -
reflecting higher energy prices and a cold March - while
spending at restaurants dropped by 5.6%, home improvements fell
6.6% and clothing spending declined 3.4%, the biggest drop in
six months, Barclays said.
Retailers, pubs and restaurants, hoping for a boost from
Britons celebrating King Charles's coronation next month, may
also be set for disappointment.
Only 35% of Britons planned extra spending to mark the
public holiday, with 11% expecting to buy extra food and drink
to entertain guests, while 8% intended to spend more in pubs,
which will have extended opening hours, Barclays said.
(Reporting by David Milliken; editing by Barbara Lewis)
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