More people entertaining at home amid cost of living crisis
Sales of home accessories and furniture increased sharply in March, according to the British Retail Consortium (BRC), which helped to boost total retail sales by 5.1% compared with the previous year.
The cost of living continues to put pressure on households, with inflation rising 10.4% in the year to February.
The BRC said that Mother’s Day drove sales of jewellery, flowers and fragrances, but that wet weather held back demand for gardening, DIY and fashion items. Sales of home accessories and furniture saw the strongest growth of any category in March, as people chose to entertain at home in order to save money.
Paul Martin, UK head of retail at KPMG, said that the trend was likely to continue as council tax, mobile and utility bills rose and personal tax allowances were frozen.
Meanwhile, grocers are looking for ways to deliver value to customers as food prices continue to rise, according to retail research firm IGD. Despite consumer confidence edging up, businesses continue to face extensive cost pressures such as rising wholesale costs and wages. The Bank of England predicts that inflation will fall later this year as food and energy costs come down.
