The latest BRC-KPMG Retail Sales Monitor shows February was a particularly tough month for retailers, with record levels of rain keeping many people at home, rather than visiting shops.
Total retail sales growth across the UK slowed to 1.1% last month, below the three-month average of 1.4% and the 12-month average of 3.1%. The figures are not adjusted for inflation, which was running at 4% in January, suggesting a further drop in volumes.
Food sales increased 6.0% year-on-year over the three months to February, below the 12-month average growth of 7.9%. Meanwhile, non-food sales slid 2.5%, significantly steeper than the 12-month average decline of 0.9%
“Consumer demand was dampened by the wettest February on record, translating into a poor month of retail sales growth,” said BRC Chief Executive Helen Dickinson. “Not even Valentine’s Day lifted customers out of the gloom.”
With consumer confidence and demand remaining weak, Dickinson called on the government to find ways to stimulate the economy.
“Retailers have some government-induced cost hurdles to jump in the coming months, including a £400m business rates rise based on last September’s 6.7% inflation rate,” she said. By using Wednesday’s Budget to reduce this, the Chancellor will lend a helping hand to much-needed investment in businesses and local communities up and down the country.”
Commenting on the performance of the food & drink sector, Sarah Bradbury, CEO at IGD, said: “The UK grocery market saw sales and volumes both increasing from last year, with February the third month in a row where volumes were in year-on-year growth. However, although sales were also up on last year, they were down compared to the previous month. This is the fifth month in a row this has occurred, and the trend is likely to continue as inflation leaves the market.
“Following news that the UK entered a technical recession over the festive period, shoppers were feeling slightly less positive in February than they were in January. However, confidence levels didn’t slip as far as they could have, with the promise of lower energy bills on the horizon and indications that the recession could in fact already be over playing a role here.”
