Retail sales

March gave retail a welcome lift to retail sales, but may prove to be the calm before a tougher spring, with much of the uplift driven by Easter timing and good weather.
Warmer weather lifted clothing, while beauty and electricals were supported by new collections and launches, showing shoppers are willing to spend where there’s a combination of value, relevance and innovation.
That said, it remains a market defined by selective demand, where consumers are still cautious and highly deliberate in how they spend.
That matters because the backdrop is becoming more difficult. Retailers are heading into spring with a deterioration in consumer confidence, rising inflation among essentials and supply chain costs. This is mounting pressure on margins as retailers battle for market share.
March shows demand can still be unlocked, but only by retailers that understand exactly where customers are willing to spend and what will persuade them to do so.

The rise in sales is interesting considering overall state of psychological uncertainty, although when juxtaposed with the length of multiple existential crises and no clear view of their swift resolution it is not surprising. There is a threshold at which the impact of existential threats will turn from austerity into indulgence or even into claiming some sense of control over your life. This is what I believe we are seeing here.
It has been too long for people to be marinated in the soup of existential threats to only resort to austerity. Impulsiveness or investment mindset (like the one we are seeing with buying art) are both a form of claiming some control over your own life and we can expect more of similar behaviours going forward.

Retailers are seeing demand in some areas but its important not to misread whats driving it. But this isn't a consumer confidence story, it's about reaction. The spike in sales is telling in the fact that everyone remembers COVID and the masses panic buying toilet paper and pasta running out and all of that jazz. And that's a basic reaction from people with the war. It's panic that we're gonna run out of stuff, and that's why there's been a spike. Global uncertainty and rising costs means that people are trying to protect themselves.

Ecommerce continues to gain ground because it gives customers transparancy over price and convenience, which matters even more when finances are pressured. High street retail still has a clear role. Store that offer experience, personality and a sense of connection continue to perform. Some uplift is coming from "newness" which is where strong merchandising pays off.