UK retail sales growth slows as rising costs loom
By Benjamin Chiou
Date: Tuesday 11 Mar 2025
(Sharecast News) - Retail sales growth slowed again in February as poor fashion sales weighed down non-food spend, according to data out on Tuesday from the British Retail Consortium and KPMG.
The monthly BRC-KPMG Retail Sales Monitor report showed that UK retail sales rose at a year-on-year rate of 1.1% last month, compared with a 2.6% gain in January and the 3.2% growth registered in December.
However, while this was below the three-month average growth rate of 2.4%, this was still above the 12-month average of 0.8%.
Food sales were 2.3% higher than last February, though non-food sales were flat year-on-year.
"While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics. Jewellery, watches and fragrance sold well thanks to Valentine's Day, reversing declines seen last year, and furniture also returned to growth," said Helen Dickinson, chief executive of the BRC.
"Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on Spring and Summer wardrobes."
Looking ahead, Dickinson said retailers will have "little choice" but to raise prices or cut investment ahead of the £7bn in new costs, with higher wage bills, National Insurance contributions and a new packaging levy set to kick in.
"It is time for government to course correct to ensure investment and growth are not undermined," she said.
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