Retailers saw sales collapse in March as a strong start to the month gave way to a steep late-month downturn, according to the latest High Street Sales Tracker from BDO.
Total sales in discretionary categories including fashion, homewares and lifestyle rose just 0.8% year on year in March, equating to a decline in volumes once inflation is taken into account. The result reflected a month of two halves; the first two weeks in March saw above-inflation growth, boosted by Mother’s Day spending, which dropped away following the outbreak of conflict in the Middle East.
The final two weeks of the month recorded year-on-year declines of -3.04% and -7.74% respectively. Consumer confidence has now fallen to its lowest level since April 2025, amid warnings that food and fuel prices are set to rise further by the end of the year.
A dismal few months
Sophie Michael, head of retail and wholesale at BDO, said: “After a dismal few months, March started with a ray of hope for retailers, above-inflation sales growth on the high street for the first two weeks suggested some green shoots of recovery with Mother’s Day spending giving retailers a boost. But this was a month of two halves and those hopes were quashed in the final two weeks of the month.”
She added: “It is now clear that this is going to be a hugely painful period for retailers. They are navigating an already challenging trading environment, while facing further rises in National Minimum Wage and expanding employment rights, increasing labour costs, against a shrinking consumer purse and falling consumer confidence.
“These factors create a perfect storm, adding further pressure on sales, margins and investment across the sector.”
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