ACS

UK retail sales fell 1.6% on a like-for-like basis, compared with March 2007, when sales were up 3.9%. The decline was the worst since July 2005 when cold wet weather hit sales.

The earlier Easter, together with extremely unseasonal weather and school holidays spread across several weeks, make comparisons difficult. The additional spending for Easter being in March this year but in April last year would normally be expected to result in a year-on-year increase in sales.

Food sales slowed after two strong months and clothing and footwear were the worst for at least 8 years. Homewares and furniture fell further, despite continued discounting and promotions. Consumer confidence has fallen further to new lows.

With increasing demands on household budgets, shoppers are very price-conscious and reluctant to spend on big-ticket items. Heavy discounting was still needed to tempt customers to buy.

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