UK retail sales in February 2024 increased by 1.1% year-on-year, a slowdown compared to the 5.2% growth observed in February 2023, show new figures from the British Retail Consortium (BRC).
This rise falls short of the 3-month average growth of 1.4% and the 12-month average of 3.1%.
Despite the increase, these figures, which are not adjusted for inflation, may not fully reflect actual volume changes in sales, especially considering current higher-than-normal inflation rates reported by the BRC's February shop price index (SPI) and January CPI (Office for National Statistics).
With expectations of inflation dropping in the upcoming months, retail sales figures are also anticipated to decline.
Food sales over the 3 months to February rose by 6.0% year-on-year, a decrease from the 8.3% growth in February 2023 and below the 12-month average growth of 7.9%. Conversely, non-food sales witnessed a 2.5% year-on-year decline over the same period, a sharper fall than the 12-month average decline of 0.9%, indicating a decrease in consumer spending on non-essential items.
Furthermore, in-store non-food sales decreased by 2.3% year-on-year over the 3 months to February, significantly lower than the 8.1% growth seen in February 2023, and below the 12-month average growth of 0.3%.
Online non-food sales also fell by 4.1% year-on-year in February, a steeper decline compared to previous periods, with the online penetration rate dropping slightly to 35.7% from 36.1% in February 2023, suggesting a slight shift in shopping habits.
BRC chief executive, Helen Dickinson OBE, said:
"Consumer demand was dampened by the wettest February on record, translating into a poor month of retail sales growth. 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.
"With consumer confidence and demand remaining weak, Government must find ways to stimulate the economy."
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