Retail sales in the UK increased again in February as strong demand for non-food products offset more subdued conditions in the food sector.
Figures from the British Retail Consortium (BRC) and KPMG show that on a total basis, sales increased by 6.7% last month, against a rise of 1.0% in the same period in 2021 when the UK was subject to lockdown restrictions. However, the latest figure was down from the 11.9% rise recorded in January as more normal trading conditions returned and warnings about difficult economic times ahead impacted consumer spending.
On a like-for-like basis, retail sales rose 2.7% from February 2021, when they had increased 9.5%. This was worse than the 3-month average growth of 3.5% and the 12-month average growth of 8.5%.
Over the three months to February, food sales edged up 0.1% on a total basis and decreased by 0.3% on a like-for-like basis. However, the report noted that food sales were in decline for the single month of February against tough comparisons with the lockdown period last year when people were eating more at home.
Meanwhile, non-food retail sales rose by 12% on a total basis and by 6.9% on a like-for-like basis over the same three month period. This is worse than the 12-month total average growth of 19.4%, although for the month of February non-food was in growth, driven by traditional try-before-you-buy products, like furniture and home accessories, as well as fashion and jewellery, as more people returned to stores.
“February saw continued sales growth, although dampened by Storm Eunice and falling consumer confidence,” said Helen Dickinson, Chief Executive of the BRC.
The data shows online non-food sales decreased by 28.4% during February, compared with growth of 82.2% during the lockdown last year. However, Dickinson noted that the new spending habits driven by the pandemic have settled into a new normal, particularly for non-food, with four in every ten pounds now spent online compared to three in every ten before the pandemic. “Retail has driven five years of digital transformation in 24 tumultuous months,” she said.
Meanwhile, Dickinson highlighted that the future was looking increasingly uncertain, with current demand unlikely to be sustained. “Consumer confidence, falling in recent months, will likely tumble further against the backdrop of the current geopolitical events,” she said,
“The cost of living will continue to spiral due to global inflation, increasing energy bills and the rise in national insurance this Spring. With households facing lower disposable income, discretionary spend will be one of the first things to feel the squeeze.”
