The British Retail Consortium (BRC) has reported signs of green shoots in UK retail, but says bigger ticket sales remain weak.

Total UK retail sales increased by 1.1% year-on-year in March, against a growth of 3.5% in March 2024.

This was above the 12-month average growth of 0.6%.

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It is particularly pleasing, considering last year’s March figures included Easter, while the Bank Holiday takes place April this year, distorting year-on-year comparisons.

Non-Food sales increased by 0.6% year-on-year in March, against a decline of 0.4% in March 2024.

Although this was below the 3-month average growth of 1.1%, it was above the 12-month average decline of 0.8%.

In-Store Non-Food sales remained stable with 0.1% dip year-on-year in March, against a growth of 0.1% in March 2024.

This was below the three-month average growth of 1.9% but above the 12-month average decline of 1.7%.

Whereas the online penetration rate (the proportion of Non-Food items bought online) increased to 37.1% in March from 36.6% in March 2024 and was above the 12-month average of 36.8%.

Chief executive of the British Retail Consortium Helen Dickinson said: “Despite a challenging global geopolitical landscape, the small increase in both food and non-food sales masked signs of underlying strengthening of demand given March 2025’s comparison with last year’s early Easter.

“The improving weather made for a particularly strong final week, with gardening and DIY equipment flying off the shelves.

“Jewellery and beauty products were helped by Mother’s Day, though sales of bigger ticket items like furniture remained weak.

She continued: “Since the start of April, retailers have had to contend with £5 billion pounds of new government-imposed costs as a result of increases to the National Living Wage and National Insurance.

“This rises to £7bn when the new packaging tax comes into effect in October and will undoubtedly increase inflation later in the year and hold back critical investment in high streets across the country.

“Government has ample opportunities to kick start that investment by ensuring that no shop pays more as part of their planned reforms to business rates and that the Employment Rights Bill doesn’t reduce the availability of entry level and part time jobs.

“Investment and growth are what the economy needs right now.”

Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said: “As Spring weather arrived, house and garden related purchases and gifts for Mother’s Day drove retail sales growth in March.

“Amidst downbeat consumer confidence in the UK’s economic outlook, and many households facing rising costs, retail sales growth feels an achievement.

“ But with non-food sales only climbing around 1% on average, competition means there are some retailers really struggling whilst others win, especially online.

“Retailers will be pushing for higher growth rates as we move toward summer and holiday season, particularly as they are now paying higher wage costs and facing volatility and potential impact on their supply chains due to global tariffs.”