Food sales volumes fell 1.1% in March, with households cutting back due to cost-of-living concerns, data from the Office for National Statistics (ONS) reveals.
The ONS said that the decrease was also due to more shoppers preferring to eat out and socialise after Covid-19 restrictions came to an end.
The data also reveals a 3.8% decrease in fuel sales volumes as soaring petrol and diesel costs put motorists off making unnecessary journeys.
Overall sales volumes fell 1.4% in March, although they remain 2.2% above pre-Covid levels of February 2020, the research shows.
In addition, online sales fell 7.9% in March, as shoppers reduced spending on non-essential items.
ONS Director of Economic Statistics, Darren Morgan, said: “Retail sales fell back notably in March, with rises in the cost of living hitting consumers’ spending. Online sales were hit particularly hard due to lower levels of discretionary spending.
“Fuel sales also fell substantially, with evidence suggesting some people reduced non-essential journeys, following record-high petrol prices, while food sales continued to fall, dropping for the fifth consecutive month.”
Helen Dickinson, Chief Executive of the British Retail Consortium, added: “The cost-of-living squeeze has many consumers thinking twice about major purchases, while their expectations of future financial situation plummeted to lows not seen since the financial crisis.
“Consumers face even more challenges as the energy price cap rose to a record high this month.”
She added: “Retailers are themselves squeezed between rising costs of operations, exacerbated by the situation in Ukraine, and weaker demand from customers.
“Higher global commodity prices, rising energy and transport costs, and a tight labour market are all taking their toll. As a result, it is likely that retail prices will continue rise over the course of 2022.”
