UK retail sales climb unexpectedly despite supermarket slowdown
Retail sales across the UK increased by 1.0% in February, following a revised 1.4% rise in January, according to the latest figures from the Office for National Statistics (ONS).
Retail sales across the UK increased by 1.0% in February, following a revised 1.4% rise in January, according to the latest figures from the Office for National Statistics (ONS).
The increase was driven by a strong performance in non-food stores, which saw sales volumes rise across all categories, including clothing, household goods, and department stores.
Household goods stores recorded the biggest growth, up 6.8% month-on-month – their largest increase since April 2021. Watches and jewellery retailers also saw a boost in demand, attributed to economic uncertainty driving interest in gold.
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However, the ONS said food store sales volumes fell by 2.0% in February, offsetting some of the overall gains. Supermarkets were the biggest drag on food sales, with retailers citing the impact of rising prices on consumer spending.
Online retail also rebounded in February, with online spending values rising 3.3% after a weak start to the year. The proportion of total retail sales made online increased from 25.8% in January to 26.5% in February.
Overall, sales volumes in the three months to February were up 0.3% compared with the previous three months, and 2.0% higher than the same period in 2024. However, retail volumes remain 0.4% lower than their pre-pandemic level recorded in February 2020.
Deloitte head of retail Oliver Vernon-Harcourt said: “A second consecutive month of retail sales growth, particularly the better-than-expected results for February, should be reassuring for many retailers.
Despite the cold weather snap, consumers still looked to upgrade their wardrobes, while household goods also performed particularly well, perhaps as the half-term break encouraged an early round of spring cleaning and home improvement.
“While these results are positive, and a much needed boost for the sector, there are still headwinds for both consumers and retailers. Food inflation remains high, meaning consumers are buying less, and retailers will be feeling cautious in the build up to changes to wage costs next week. Retail businesses will be focusing on driving efficiency and limiting costs in order to build some resilience in the coming months.”
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