Retail sales fell year on year in March as pre-pandemic habits and hobbies returned.

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Retail sales volumes including fuel dropped 1.4% year on year, according to the latest data from the Office for National Statistics (ONS), declining 0.6% when fuel is excluded.

Compared with pre-pandemic levels recorded in February 2020, sales volumes excluding fuel were up 2.2%.

On a values basis, sales excluding fuel rose 6.7% year on year and were up 9% on February 2020.

Sales in March 2022 showed the continuation of a downward trend in online spending, down 7.9% over the month, after a 6.9% decline in February.

Online sales proportions declined to the lowest level since before the pandemic in February 2020 – down to 26%.

Food store sales volumes also dropped by 1.1% in March. They have fallen each month since November 2021 as consumers spent more time in hospitality venues such as restaurants and bars.

The impact of rising food prices and the cost-of-living crisis could also be impacting food sales.

British Retail Consortium chief executive Helen Dickinson said: “March sales were impacted by rising concerns around inflation as consumer confidence tumbled. The cost-of-living squeeze has many consumers thinking twice about major purchases, while their expectations of future financial situation plummeted to lows not seen since the financial crisis. 

“Consumers face even more challenges as the energy price cap rose to a record high this month. Internet sales dropped to their lowest proportion of total retail sales since the start of the pandemic as shoppers gradually returned to physical retail destinations.

“Retailers are themselves squeezed between rising costs of operations, exacerbated by the situation in Ukraine, and weaker demand from customers. Higher global commodity prices, rising energy and transport costs, and a tight labour market are all taking their toll. As a result, it is likely that retail prices will continue to rise over the course of 2022.”

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