Retail sales beat expectations as Brits keep shopping
Retail sales volumes beat expectations in February as British shoppers seemed to loosen their spending habits, according to the Office for National Statistics (ONS).
Retail sales rose one per cent month-on-month after rising 1.4 per cent in January.
Markets had expected a decline of 0.3 per cent.
Annual retail sales growth came in at 2.2 per cent versus the 0.6 per cent recorded in January.
The news will be partially welcomed by Chancellor Rachel Reeves, who said she wished to unveil a new era of “national renewal” at her Spring Statement on Wednesday.
The growth comes amid bleak economic forecasts by the Office for Budget Responsibility (OBR), which has halved its UK growth forecasts for 2025 from two per cent to just one per cent.
The rise in monthly retail sales was largely driven by a sharp increase in sales of household goods.
Food stores dragged figures down as they dropped by two per cent.
Sales of non-food items increased by 3.1 per cent.
The ONS revised its monthly retail sales for January down from 1.7 per cent to 1.4 per cent.
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.”
Deloitte’s head of retail Oliver Vernon-Harcourt said the figures would 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,” he said.
However, acording to separate surveys by the Confederation of British Industry (CBI) and KPMG in recent weeks, confidence among retailers and consumers has remained low.
Vernon-Harcourt said the change in weather could mean surveys are proven wrong.
“Spring is well and truly around the corner, so there will be hope amongst retailers that a turning of the seasons can bring a boost to confidence and lead consumers to spend more on new fashion, outdoor entertaining and categories like DIY.”