Sector: Retail

March retail sales volumes were up 0.4 per cent on the month before, according to the latest data from the Office for National Statistics (ONS), an increase that disappointed against analysts’ 0.6 per cent expectation. Furthermore, sales volumes for the first three months of 2010 were 1.7 per cent down on the final three months of 2009.

Some commentators believe this could indicate lower-than-expected growth for the UK economy as a whole. According to Howard Archer of IHS Global Insight, ‘March’s disappointing growth in retail sales fuels our suspicion that the upside for consumer spending – and hence overall economic growth – will be limited in 2010 as households still face very challenging conditions.’

The disappointing March increase followed a strong February sales rise, which admittedly came on the back of the disruption caused to January trading in the sector by the severest of cold snaps. On the positive side, March volumes were up 2.2 per cent compared with the position a year ago, amid the depths of recession. And furthermore, the ONS has revised its monthly sales growth for February to 2.5 per cent, up from an initial estimate of 2.1 per cent.

One retail business showing zero signs of distress is ASOS, the online fashion store, whose strong growth continues in both the UK and internationally, and whose shares on AIM continue their inexorable rise – they are up from a 52-week low of 313.25p to 637p.

ASOS has cheered its investors with a bullish trading missive for the year to March, ahead of figures set for release in June. Boss Nick Robertson, CEO, said total sales for the year grew by 35 per cent to £223 million, meaning that pre-tax profits should match the market’s £20 million expectation. Robertson announced that ASOS remains on track to launch US, French and German websites this year.