Fashion pulse: United Kingdom - March 2026

Consumer prices (February)

Fashion prices in the UK rose 0.9 percent year-on-year in February, well below the overall inflation rate of 3.0 percent, according to the Office for National Statistics (ONS). This marks a return to positive territory after two months of flat clothing and footwear inflation in December and January. Month-on-month, clothing and footwear prices rose 0.6 percent as spring collections reached stores.

The 2.1 percentage point gap between fashion inflation and headline inflation means clothing is becoming relatively cheaper for consumers, a pattern that has persisted for several months.

Retail sales (February and March)

Clothing store sales volumes stood at 99.9 in February, virtually unchanged from January's 100.9, according to ONS. In value terms, the index was 103.0, confirming that revenue growth was entirely driven by prices rather than volumes. The three-month rolling trend turned negative at minus 1.7 percent, down sharply from plus 5.2 percent in September, signalling a loss of momentum in clothing retail.

Online clothing sales held steady at an index of 107.6 with average weekly sales of 319.7 million pounds, according to ONS. The online share of clothing retail remained at 28.6 percent, broadly stable throughout recent months.

More recent card spending data from Barclays, which covers roughly half of all UK card transactions, painted a more positive picture. Clothing spend rose 3.6 percent year-on-year in March, following a 3.7 percent increase in February, according to Barclays. The gap between the ONS volume decline and the Barclays spending increase suggests consumers are buying fewer items at higher prices.

The Confederation of British Industry (CBI) Distributive Trades Survey, however, reported that retail sales volumes fell at the sharpest pace since April 2020 in March, with a balance of minus 52, according to the CBI. Retailers described sales as "poor" for the time of year and expect a similar decline in April.

Easter weekend footfall rose 3.4 percent year-on-year across UK destinations, with shopping centres up 9.0 percent and high streets up 4.1 percent, according to MRI Software.

Macro context (March)

Consumer confidence stood at minus 21 in March, according to market research firm GfK, down from minus 16 in January. The Bank of England (BoE) base rate held at 3.75 percent. Unemployment stood at 5.2 percent in the three months to December, according to ONS, up from levels below five percent earlier in 2025. The pound traded at approximately 1.36 dollars according to the BoE.

The bottom line: UK fashion retail presents a contradictory picture. Official ONS data shows clothing volumes turning negative, yet Barclays card data shows spending still growing at plus 3.6 percent. The resolution: consumers are buying fewer items at higher prices. The CBI's minus 52 reading for March is alarming, but Easter footfall and Barclays spending suggest the picture is not uniformly bleak. Fashion inflation at plus 0.9 percent against 3.0 percent headline inflation means the sector continues to absorb cost pressures rather than passing them to consumers.

• It should be noted that the underlying figures are based on different reporting periods: whilst price data and sentiment indicators can already available for March, retail turnover figures are reported with a time lag due to survey and publication cycles and, in this case, still refer to February. This time lag is common practice and nevertheless allows for a reliable assessment of current market trends.