Crisis, what crisis? Online spending soared 10.5% YOY in March
Retail sales held up strongly in March, despite fears the Iran war would dent consumer confidence. The home delivery expert Parcelhero says that e-commerce sales were particularly strong, with the value of online sales up 2.4% over the previous month and 10.5% over March 2025.
Retail sales volumes were surprisingly buoyant in March, says the home delivery expert Parcelhero. They rose 0.7% over February and 1.6% in Quarter 1 (Q1, January to March, 2026) compared to the previous quarter. The latest Office for National Statistics (ONS) retail sales bulletin also reveals textile, clothing and footwear stores enjoyed a 1.2% jump in the amount bought as spring fashions arrived in stores.
Parcelhero’s head of consumer research, David Jinks MILT, says: ‘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 e-commerce did well. In terms of sales volumes, the amount we all bought, non-store retailers (the ONS category which is predominantly online sellers) reported their volumes were up by 1.4% in March and 3.7% in Q1. March non-store sales volumes reached their highest level since February 2022.
‘However, the most spectacular results of all were for e-commerce sales values, which is the amount we all spent online. Online sales values rose by 2.4% in March over February and a heady 10.5% YOY when comparing March 2026 with March 2025.
‘Of course, monthly retail figures are notoriously volatile, which is why the ONS is increasingly concentrating on three-monthly figures. Q1 online sales values rose by 2.5% when compared with the previous quarter and – saving the best figures till last – by 11.7% YOY when comparing the same period with Q1, 2025.
‘We’ll end with a snapshot of retail’s overall health. The total spend (the sum of in-store and online sales) rose by 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. Watch this space…
‘Ultimately, however fickle or strong key retail periods of the year prove to be, it’s those stores with a combined High Street and online offering that are most protected against unexpected events. Parcelhero’s brand-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 e-commerce 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. You can read the full new report at https://newsroom.parcelhero.com/the-high-street-fights-back-final.pdf