The British Retail Consortium (BRC) reports a rise of 1.3 per cent on a like-for-like basis in retail sales and a 4.4 per cent rise on a total basis for the year ending March 2004.

However these comparisons are artificially boosted by last March's low base, influenced by the start of the Iraq war. Growth rates were also lower than February 2004 figures by one percentage point.

Director general of the BRC Kevin Hawkins said: " Sales were weaker during March. Whilst the figures once again defied the doom-and-gloom merchants, there is no escaping the tough retail climate".

Reported sales figures in the food and drink sector were varied. Although overall sales were in line with analyst expectations, some sectors in food and drink experienced a drop in demand. Growth was mainly realised from promotional led activities and fresh food sales outperformed dry grocery goods.

Retailers reported that demand for other retail sectors has been affected by the cooler weather, despite Mother's Day boosting sales, including the demand for flowers.

"Sales growth is sluggish," said Hawkins, "promotion led and consumer sentiment remains fragile. These are the three factors the MPC must keep in mind before taking unnecessary measures to further weaken demand."

Topics