Buyers avoid big buys due to Brexit uncertainty – retailers | Business

UK retailers warned that Brexit's uncertainty was preventing consumers from making larger purchases, after a month of disappointing sales in March.

The British Retail Consortium (BRC) and the KPMG accounting firm said sales growth fell to 0.5% in March from 2.3% a year ago, as consumers did not spend to buy expensive items.

The BRC said that the Easter calendar, April 21 this year, after its fall on April 1, 2018, would likely have skewed sales figures, as many stores had not yet experienced a sharp rise in sales before the holidays.

However, average figures over the past two years show that sales growth has slowed to 0.9% per year in March from 1.1% in February, suggesting that families cut spending last month.

The freezing weather of last March caused by the storm "The Beast of the East" also discouraged buyers from entering the main street, while the temperatures were milder this year.

Helen Dickinson, Executive Director of the BRC, said, "Retail sales slowed in March, even after easter distortions were taken into account, as greater uncertainty pushed people to avoid splashing.

"Brexit continues to fuel consumer uncertainty. For the benefit of all, members must join a plan of action that avoids agreement – and quickly – or it will be ordinary families who will suffer from rising prices and limited choice on the shelves. "

Retailers have warned that a no deal scenario could result in shortages of goods in stores and higher prices for households. Retail sales, however, have been stronger than expected in recent months, benefiting the economy.

Separate sales figures released Tuesday by Barclaycard, which processes nearly half of credit and debit card transactions in Britain, suggest that sales rose 3.1% a year in March.

Esme Harwood, director of Barclaycard, said pubs and restaurants were taking advantage, but Brexit was hurting consumer confidence.

The BRC said buyers were cautious in March because of the impossibility of getting out of the stalemate in Westminster, with falling sales of more expensive items such as furniture.

However, the milder weather that drew consumers to Main Street benefited clothing stores, while jewelers and beauty salons benefited from increased spending before Mother's Day.

Total food sales increased 1.3% in the three months to March, which is below the 12-month average of 2%. Susan Barratt, general manager of the IGD grocery research company, said that the proportion of consumers worried about the strength of the economy was relatively stable compared to last year.

"For the most part, food purchases went as usual," she said.