UK retail sales subdued in February as wet weather provides a drag
By Benjamin Chiou
Date: Tuesday 05 Mar 2024
(Sharecast News) - UK retail sales growth slowed last month as volumes were dampened by the wettest February on record, according to the British Retail Consortium-KPMG Retail Sales Monitor released on Tuesday.
Total sales rose 1.1% year-on-year in February, following 5.2% growth the year before. This was lower than the 1.2% growth seen in January and well below the 12-month average growth rate of 3.1%.
Food sales were up 6% year-on-year over the three months to February, under the 12-month average increase of 7.9%, but non-food sales dropped 2.5%, compared with the 12-month average decline of 0.9%.
"Not even Valentine's Day lifted customers out of the gloom, and gifting products that typically sell well, like jewellery and watches, failed to deliver," said Helen Dickinson, chief executive of the BRC.
"On the sunnier side, rainy weather did brighten sales of toys, as parents looked for ways to occupy their children indoors."
Looking ahead, Linda Ellett, the UK head of consumer markets at KPMG's Leisure & Retail division, said that a "consumer reluctance to get out there and start spending" will likely remain in the short term.
"With big increases in labour costs and business rates just weeks away, adding to an already stressed cost agenda for retailers, many will be pinning their hopes on some good news in the Chancellors' Spring Budget this week to help kick start a spending revival on the high street. As inflation continues to slow over the coming months and household finances are expected to improve, there is some light at the end of the tunnel for weary households."
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