World News Today: UK retail sales rebound in March

Friday, April 22, 2011

UK retail sales rebound in March

The ONS said that the data continued to present a "mixed picture" about spending in the UK

Retail sales in the UK registered a surprise pick-up in March, led by strong food and non-store sales.

Sales volumes rose 0.2% compared with a month earlier according to the Office for National Statistics (ONS).

Market analysts had expected a much weaker number after a downbeat survey was released by the British Retail Consortium last week.

It follows a revised 0.9% drop in sales in February - a fall that had also caught analysts by surprise.

Smaller shops were doing well - including those in London selling memorabilia for the royal wedding, Aileen Simkins from the ONS told the BBC.

The good weather had also helped sales of items such as climbing frames, as people prepared for a long summer.

Other sectors showing strong growth were garden stores and toy stores, while IT stores were also doing well on the back of new product launches, she said.

However, supermarkets had suffered a more challenging month, which showed that there was a mixed picture across the retail sector, she said.

The ONS figure comes after supermarket giant Tesco revealed earlier this week a 0.7% drop in UK like-for-like sales in the three months to 26 February.

Meanwhile Home Retail Group reported shrinking markets for its Argos and Homebase chains.

This article is from the BBC News website. � British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.