Food sales continued to see an uptick last month against overall dip in sales as shopper confidence rose a little as retailers brace of additional costs and legislative changes in the coming months, shows industry data released today (11).
According to British Retail Consortium (BRC), total retail sales increased by 1.1 per cent year on year in February, against a growth of 1.1 per cent in February 2024. This was below the 3-month average growth of 2.4 per cent and above the 12-month average growth of 0.8 per cent.
Food sales increased by 2.3 per cent year on year in February, against a growth of 5.6 per cent in February 2024. This was level with the 3-month average growth of 2.3 per cent and below the 12-month average growth of 2.8 per cent.
Non-Food sales were flat year on year in February, against a decline of 2.7 per cent in February 2024
Commenting on the figures, Helen Dickinson OBE, Chief Executive of the British Retail Consortium, said, “Retail sales saw more modest growth in February. 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. 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.
“This weak performance makes many retailers uneasy, especially as they brace for £7bn of new costs from the Budget and packaging levy in 2025, as well as the potential impact of the Employment Rights Bill.
"The industry is already doing all it can to absorb existing costs, but they will be left with little choice but to increase prices or reduce investment in jobs and shops, or both.
"The focus of the Employment Rights Bill should be on unscrupulous employers but instead the industry faces ongoing uncertainty and a trajectory that risks punishing responsible businesses who provide valuable employment, particularly at entry level. It is time for government to course correct to ensure investment and growth are not undermined.”
Regarding the performance in food and drink sector, Sarah Bradbury, CEO at IGD, said, "Despite upcoming cost challenges, shopper confidence rose to 2 (from -3 in January) due to wage growth and the impending rise in the National Living Wage.
"Early February saw positive retail value sales, likely from Valentine’s promotions, but overall, February's volume sales dipped. Shopper confidence is expected to remain volatile in response to the external environment."
Andrew Goodacre
Andrew Goodacre
