Retail sales rise in February as shoppers defy cold weather

Retail sales jumped in February amid a sharp rise in selling from department stores, hardware shops and clothes outlets, according to official figures.

While food sales fell back slightly, a jump in business across most other categories pushed overall retail volumes up 1% month-on-month.

The figure is well above a 0.4% contraction predicted by a consensus of economists, but slightly behind the 1.4% rise in January.

It comes as a boost for many retailers, as they brace for a rise in overheads in April, amid increases in the minimum wage, employer taxes and business rates.

Stores have also tussled with falling consumer confidence, which hit an 11-month low in February, according to a recent survey by the British Retail Consortium.

But shoppers appear to have defied a month of bad weather in February to make the most of discounting across the sector.

Wider trend

The Office for National Statistics’ senior statistician, Hannah Finselbach, said: “Retail sales jumped again in February with increases across most sectors.

“However, after a very strong January, food sales fell back this month, particularly across supermarkets.

“It was a positive month for household goods stores with their largest rise since April 2021, driven by hardware store sales. Clothing sales also picked up a little, due to falling prices from widespread discounting.

“Looking at the wider trend, retail sales are now showing growth across both the three-month and annual period, but remain below pre-pandemic levels.”

Aled Patchett, head of retail at Lloyds, added: “The uplift in sales volumes may have been supported by an increase in discounts from retailers, and we may also be seeing signs of resilient consumer demand, but businesses in the clothing and household goods sectors reported a particularly successful month.

“The sector continues to navigate challenges, and this means that retailers will remain focused on careful management of their margins.”

Food sales fell back 2% compared to the previous month, as some economists suggested this could have been driven by consumers eating out more.

Challenge

Meanwhile, the strongest performing category was household goods stores, which saw a 6.8% jump in sales as customers prepared for the warmer months.

Clothes and shoe shops also enjoyed a 2.3% increase in sales versus the previous month, the ONS said.

But experts cautioned that many of the gains came amid a wave of more promotions and sales in February.

Nicholas Found, of consultancy Retail Economics, said shoppers are “laser-focused on promotions and essentials”.

He added: “Promotional activity is no longer a tactical lever – it’s becoming a structural retail strategy to drive non-essential sales.”

He pointed to the rise in taxes and wage costs for shops coming in April, saying: “For many retailers, the challenge now is how to absorb these costs without alienating price sensitive consumers.”