Retail sales rose slightly last month, with total sales increasing 1.1 per cent in the year to February, according to new figures from the British Retail Consortium (BRC) and KPMG.
Although this was down from January’s 2.6 per cent climb, it remained above the 12-month average of 0.8 per cent.
A surge in online non-food purchases and strong spending on food helped offset soft fashion sales, while jewellery, watches and fragrances received a boost from Valentine’s Day shoppers. Food sales rose 2.3 per cent compared with the same period last year, contributing to the modest overall gain. Non-food sales, however, were flat year on year, as economic uncertainty continued to weigh on bigger ticket purchases like white goods.
Despite steady wage growth over the past two years, households remain cautious with their spending. High energy costs, subdued demand and rising prices have prompted more cautious buying habits, even as consumer confidence inched upwards.
Helen Dickinson, Chief Executive of the BRC, highlighted the contribution of online channels: “While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics.” She also pointed to February’s cold, wet weather as a factor in lacklustre clothing sales, but remained optimistic that sunnier days in March would revive consumer interest in spring and summer collections.
Separate data from Barclays revealed card spending climbed by 1 per cent year on year in February, falling short of January’s 1.9 per cent increase and trailing behind the current inflation rate of 3.9 per cent. Essential spending declined, reflecting a preference for saving, but consumer confidence still reached 75 per cent, its highest level since Barclays began collecting such data in 2015.
Britons’ spending priorities showed continued emphasis on travel, which rose by 4.7 per cent in February, while spending on eating and drinking out slipped by 0.4 per cent. Linda Ellett, the UK Head of Consumer, Retail and Leisure at KPMG, said: “Nervousness about the economy is deferring other big-ticket purchasing but occasions and offers are still tempting shoppers into some impulsive spending.”
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Retail sales rise modestly in February as Valentine’s Day boosts spending