Report Summary

Period covered: 1 March – 4 April 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Online performance

Online retail sales rose by xx year-on-year in March, an acceleration from the xx% increase recorded a year earlier.

With Easter falling within the March trading window this year, and April a year earlier, seasonal demand was pulled forward, lifting online growth.

Average weekly online sales reached £xxm, up from £xxm a year earlier while online penetration rose to xx% of total retail sales, up from xx% last year,

Key drivers

The timing of Easter drove a marked uplift in online grocery and seasonal purchasing. Households increasingly turned to online channels for convenience-led missions, particularly around larger basket shops and event-based buying.

Warmer weather also contributed, particularly in the first half of the month, supporting demand in categories such as clothing and garden-related products. However, unlike physical retail, where improved weather boosted footfall, online demand remained more closely tied to planned and convenience-driven purchases.

The second half of the month saw a shift in behaviour. The escalation of conflict in the Middle East weighed on confidence, with consumers becoming more deliberate in their spending.

A notable feature of the month was the continued divergence between pureplay and multichannel retailers. Sales growth among non-store retailers remained stronger, supported by sharper pricing and more agile promotional strategies. At the same time, multichannel retailers saw some demand shift back into stores during periods of improved weather.

Macroeconomic backdrop

The macroeconomic environment shifted during March, with geopolitical developments overshadowing performance.

Inflation moved higher, with CPI rising to xx% year-on-year, up from xx% in February. Fuel prices were a key driver, along with increases in air fares and food. Food inflation rose to xx%, adding pressure to household budgets and driving value-led purchasing behaviour.

The escalation of conflict in the Middle East introduced further uncertainty, particularly through its impact on energy markets. Rising oil and gas prices have increased the risk of higher inflation in the coming months, with expectations now pointing to inflation remaining elevated through the second quarter and beyond.

The Bank of England held interest rates at xx% in March, but market expectations moved away from rate cuts and towards a prolonged period of higher borrowing costs. This could have direct implications on consumer spending, particularly in discretionary categories.

Consumer confidence weakened, with the GfK index falling to -xx. Households remain relatively stable in their own financial positions, but concerns about the wider economy have increased. This has led to a rise in precautionary saving and a more cautious approach to spending.

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Proportion of online retail sales by category (Period aligned to ONS trading calendar – 1 March - 4 April 2026)