UK online retail spending rises 10.5% in March

UK online retail spending rose 10.5% year on year in March as overall retail sales remained firm, according to figures cited by Parcelhero.

The delivery and retail analysis company said online sales values rose 2.4% from February, while total retail sales volumes increased 0.7% month on month. Over the first quarter, retail sales volumes were up 1.6% from the previous quarter.

The figures suggest a resilient consumer market at a time when there were concerns conflict involving Iran could weigh on household confidence and demand. The latest Office for National Statistics retail sales bulletin showed spending held up better than expected.

Some store-based categories also performed well. Textile, clothing and footwear retailers recorded a 1.2% rise in sales volumes as spring ranges reached shops.

David Jinks, head of consumer research at Parcelhero, said some of March’s strength was driven by fuel buying rather than broader discretionary spending.

“While there were understandable concerns that the Iran conflict, which started at the end of February, would impact consumer spending, ironically it helped drive up March’s result due to people stockpiling petrol. With automotive fuel sales stripped from the figures, March’s sales volumes were actually only 0.2% up overall.”

“What is in no doubt is that eCommerce did well. In terms of sales volumes, non-store retailers, the ONS category that is predominantly online sellers, reported volumes up 1.4% in March and 3.7% in Q1. March non-store sales volumes reached their highest level since February 2022.”

“The most spectacular results of all were for eCommerce sales values, the amount spent online. Online sales values rose by 2.4% in March over February and by 10.5% year on year, comparing March 2026 with March 2025.”

“Of course, monthly retail figures are notoriously volatile, which is why the ONS is increasingly concentrating on three-month figures. Q1 online sales values rose 2.5% compared with the previous quarter and, saving the best figures till last, 11.7% year on year against Q1 2025.”

“We’ll end with a snapshot of retail’s overall health. Total spend, the sum of in-store and online sales, rose 1.8% in March and online sales claimed 28.7% of the entire retail market. It will be fascinating to see if this surprisingly strong set of retail results holds up in April as the Iran conflict drags on.”

“Ultimately, however fickle or strong key retail periods of the year prove to be, stores with both a High Street and online offering are the most protected against unexpected events. Parcelhero’s new report, ‘2030: The High Street Fights Back?’, has just been launched as the sequel to its 2016 publication, ‘2030: The Death of the High Street’. The update examines the impact of eCommerce and events such as the pandemic on the High Street. It concludes that the High Street may not have reached a dead end by 2030 but, in this new age of retail, it will have arrived at its biggest crossroads,” Jinks said.

Online share

Beyond the monthly rise, the quarterly numbers suggest internet shopping continued to take a larger share of household spending. Online sales accounted for 28.7% of the total retail market in March.

That matters for retailers balancing store estates with digital operations. The data suggests consumers continued to direct a substantial share of spending online even as physical categories such as clothing improved.

The non-store category, used by the ONS to capture predominantly online sellers, reported sales volumes up 1.4% in March and 3.7% across the first quarter. March marked the highest level for non-store sales volumes since February 2022.

Mixed picture

The broader retail picture was less dramatic once fuel was excluded. Underlying sales volumes would have shown only a 0.2% monthly rise without the boost from automotive fuel purchases.

That highlights the tension within the numbers. Headline retail growth remained positive, but part of the increase appears to have come from precautionary buying linked to geopolitical uncertainty rather than a broad-based surge in discretionary consumer demand.

Even so, online spending values outpaced the rest of the market. First-quarter online sales values rose 2.5% from the previous quarter and were 11.7% higher than the same period a year earlier.

The contrast between sales values and sales volumes is also notable. Higher values can reflect consumers buying more items, spending more per purchase, or changes in product mix, while volume figures track the amount bought more directly.

For retailers, the data suggests digital channels remained a source of growth during a period of external uncertainty. It also underlines the uneven nature of consumer spending, with some sectors benefiting from seasonal demand and others from short-term reactions to international events.

March’s results combined several themes at once: a resilient headline retail market, a stronger showing for online spending, and a more modest underlying picture once fuel effects are removed. Online sales claimed 28.7% of the retail market.