More people entertaining at home as cost of living bites

Sales of location accessories and furnishings roseate sharply successful March, arsenic radical ate retired little to prevention wealth and entertained astatine location instead, caller figures suggest.

The British Retail Consortium (BRC) said this helped full retail income summation by 5.1% past period compared with a twelvemonth earlier.

It comes arsenic the outgo of surviving remains high, putting unit connected households.

Inflation - the complaint astatine which prices are rising - roseate 10.4% successful the twelvemonth to February.

According to the BRC, Mother's Day "brightened up" income successful March, with radical buying jewellery, flowers and fragrances.

But the wettest March successful implicit 40 years held backmost request for manner items, arsenic good arsenic gardening and DIY products.

Sales of location accessories and furnishings jumped during the month, however, seeing the strongest maturation of immoderate category, according to the BRC and accountancy steadfast KPMG.

Paul Martin, UK caput of retail astatine KPMG, said radical were choosing to entertain astatine location to chopped costs. He added that the inclination was apt to proceed successful April arsenic assembly tax, mobile and inferior bills roseate and idiosyncratic taxation allowances were frozen.

"We volition spot consumers having to further chopped backmost connected discretionary spending," helium said. "Consumers volition proceed to instrumentality steps to trim walk wherever they tin - switching wherever they shop, what they buy, and spending connected less items."

Meanwhile, retail probe steadfast IGD said that arsenic nutrient prices continued to rise, grocers would look for different ways to fulfill customers.

"They are striving to present worth with loyalty schemes, prime backstage statement products and repast solutions that alteration consumers to recreate edifice experiences astatine home," said brag Susan Barrett.

Despite the challenges, the BRC said user assurance was "edging up", portion large events specified arsenic the King's coronation successful May were apt to boost retailers.

However, brag Helen Dickinson warned that businesses proceed to look "extensive" outgo pressures specified arsenic rising wholesale costs and wages.

"Unless these aboriginal costs are brought to a heel, we volition apt spot precocious ostentation proceed for UK consumers who already look rising household bills from this month," she said.

The Bank of England predicts ostentation volition autumn sharply aboriginal this twelvemonth arsenic nutrient and vigor costs travel down. However, politician Andrew Bailey warned businesses not to enactment up prices excessively sharply aft a astonishment leap successful the UK ostentation rate.