Covering the four weeks 02 February – 01 March
2025
-
UK Total retail sales increased by 1.1% year
on year in February, against a growth of 1.1% in February 2024.
This was below the 3-month average growth of 2.4% and above the
12-month average growth of 0.8%.
-
Food sales increased by 2.3% year on year in
February, against a growth of 5.6% in February 2024. This was
level with the 3-month average growth of 2.3% and below the
12-month average growth of 2.8%.
-
Non-Food sales were flat year on year in
February, against a decline of 2.7% in February 2024. This was
below the 3-month average growth of 2.5% and above the 12-month
average decline of 0.9%.
-
In-Store Non-Food sales decreased by 1.0% year
on year in February, against a decline of 1.8% in February
2024. This was below the 3-month average growth of 0.8% and
above the 12-month average decline of 1.7%.
-
Online Non-Food sales increased by 1.9% year
on year in February, against a decline of 4.1% in February
2024. This was below the 3-month average growth of 5.3% and
above the 12-month average growth of 0.6%.
-
The online penetration rate (the proportion of
Non-Food items bought online) increased to 36.4% in February
from 35.8% in February 2024. This was below the 12-month
average of 36.7%.
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.”
Linda Ellett, UK Head of Consumer, Retail & Leisure,
KPMG, said:
“Consumers remain cautious with their spending and many are
continuing to prioritise saving, travel and experiences.
Nervousness about the economy is deferring other big ticket
purchasing, but occasions and offers are still tempting shoppers
into some impulsive spending. Valentine's, for example,
brought a jewellery sales boost to the high street, in what was
otherwise a flat month for in-store
buying.
“Online non-food sales growth is outpacing in-store and while
shops will always be a key part of many retailers' strategy -
rent, rates, and employment costs all must be factored in.
As we have seen already this year, firms are increasingly
scrutinising where best to be located and the implications of the
likes of recently announced employment cost rises. Online
shopping and the growth of social commerce has contributed to a
lowering of demand for some physical retail stores and boardrooms
will continue to keep a close eye on monthly footfall and sales
data as 2025 progresses.”
Food & Drink sector performance | Sarah Bradbury,
CEO, 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."
Source: ShopperVista research, 1000+ GB shoppers, February 2025.
