Skip to content
Search
AI Powered
Latest Stories

Retail sales steady in February

Retail sales steady in February
iStock image
Getty Images

Retail sales unexpectedly held steady in February despite wet weather hitting in-store sales, according to figures from the Office for National Statistics on Friday

The ONS said retail sales volumes were flat in February, following an increase of 3.6 per cent in January (revised up from 3.4%).


However, the figure remained 1.3 per cent below the levels before the Covid-19 pandemic in 2020.

“Extreme wet weather in February translated into weak consumer spending and an uninspiring month for retail sales,” Jacqui Baker, head of retail at RSM UK and chair of ICAEW’s Retail Group, commented.

“Many retailers are still feeling the strain and will feel the UK chancellor missed an opportunity to support the industry in the recent Spring Budget. The upcoming increase in national minimum wage and business rates will only add to the current burden.”

The flat figures follow a couple of volatile months when sales volumes slumped 3.5 per cent in December after a weak Christmas trading period before jumping 3.6 per cent in January.

The ONS said heavy rain contributed to falls in sales at food and household goods stores but boosted online shopping.

However, clothes sales rose last month as consumers opted to shop around for promotions and new collections.

Clothing sales rose by 1.7 per cent - the biggest increase since December 2022 - after a 0.7 per cent decline in January.

Compared with a year ago, overall sales volumes were 0.4 per cent lower.

Separately on Friday, a survey showed British consumer sentiment held steady in March but households turned positive about the outlook for their personal finances for the first time in more than two years.

“Despite headwinds there are reasons to feel optimistic,” Baker said.

“With the latest National Insurance cut, energy prices set to fall further in April and inflation getting back on track, the hope is that this will give consumers’ the confidence to go out and spend more. Plus, with new season stock continuing to land, retailers can hopefully put an end to the prolonged discounting and focus on making back some margin.”

Thomas Pugh, economist at RSM UK, added that flat retail sales in February could still help to pull the economy out of recession in Q1 given the large rise in January.

“There are plenty of reasons to be more positive on the outlook for the rest of this year. Lower inflation, strong wage growth and falling interest rates will give households a boost to their disposable incomes in the summer,” he commented.

“What’s more, we expect consumer confidence to continue to improve, meaning that rising incomes should result in more spending. As a result, retailers probably won’t have to wait much longer before a material upswing in their prospects.”

More for you

Pound Sterling bank notes
iStock

National Living Wage to increase to £12.21 in April 2025

The government has on Wednesday announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).

The rates which will apply from 1 April 2025 are as follows:

Keep ReadingShow less
Michael Fletcher

Michael Fletcher

Former Nisa chief Michael Fletcher appointed SPAR UK managing director

SPAR UK has announced the appointment of Michael Fletcher as its new managing director.

Fletcher spent 22 years at Tesco plc, where he held numerous senior commercial roles in the UK, Ireland and Asia. He joined Co-op Retail in 2013 where he held the position of chief commercial officer before moving on to become CEO of Nisa Wholesale, a role he held until 2022.

Keep ReadingShow less
National President Mo Razzaq 2024 serious 1 1
Fed National President Mo Razzaq

Indies: It’s criminal police and government turn blind eye to shoplifting

Independent retailers are demanding tougher police action, more bobbies on the beat and harsher punishments as shoplifting levels reach an all-time high, a new survey reveals.

A whopping ninety-one per cent of respondents to a survey conducted by the Federation of Independent Retailers (the Fed) called for more police patrols on streets, while a similar number - 90 per cent - said that shoplifters should be handed harsher sentences.

Seven out of 10 respondents (72 per cent) said their stores had experienced shoplifting, break ins and damage to property, while they and their staff had been physically or verbally threatened.

Just under half of respondents (47 per cent) said they and their employees had been threatened or had suffered abuse and violence when asking for proof of age ahead of selling an age-restricted product.

Forty-four per cent reported that they and their staff had faced abuse or violence because they had refused to make a proxy sale – selling an age restricted product to a customer buying for a minor.

The results of the Fed’s survey came as new figures from the Office of National Statistics revealed that shoplifting was at a record high, with almost half a million offences recorded last year.

According to the ONS, 469,788 offences were logged by forces in the year to June 2024 – a 29 per cent increase on the previous 12 months.

The ONS added that this figure was the highest since records began – in March 2003.

“Inadequate responses from the police and a slap on the wrist for offenders means that shoplifting is soaring, and offenders are becoming more aggressive and brazen,” said Fed National President Mo Razzaq.

“From the responses we received, it is clear that real action is needed by police, by courts and by the government to stem the overwhelming tide of crime against retailers and their staff. Everyone deserves to feel safe at work and for their businesses to be protected against criminals.

“Fed members are also sending a clear message that one of the catalysts for verbal and physical abuse in stores is asking for proof of age before selling an age restricted product. If the government presses ahead with its plans to phase out smoking and vaping through a progressive ban to gradually end the sale of tobacco products across the country, independent retailers will be subject to even greater levels of violence, abuse and theft.”

Calling for action from the government and not just words, Mr Razzaq continued: “Without effective deterrent, criminals and opportunistic members of the public will continue to commit crimes.”

According to Ministry of Justice statistics, during the year to March 2024, 431 fines were handed out for retail theft under £100, while Home Office statistics for the same period show that 2,252 cautions were accepted for shoplifting.

PayPoint

PayPoint unveils new partnership with Leeds Credit Union

PayPoint has announced a new partnership with Leeds Credit Union (‘LCU’), a financial cooperative with 37,000 members, enabling them access to its CashOut service, effective immediately.

The partnership will mean that LCU customers can access their cash and savings across any of PayPoint’s UK network of 29,000 retailer partners. This represents an unprecedented growth in accessibility and the first partnership of its kind for LCU. Historically customers have needed to visit one of LCU’s four branches to withdraw money.

Keep ReadingShow less
Philip Morris to close German factories as cigarette demand declines
A Philip Morris logo is pictured on a factory in Serrieres near Neuchatel, Switzerland December 8, 2017. REUTERS/Denis Balibouse/File Photo

Philip Morris Shutting Down German Factories Due to Declining Cigarette Demand

Marlboro-maker Philip Morris said Tuesday it planned to close down its two production sites in Germany, citing falling demand for cigarettes among Europeans.

"In recent years, demand for cigarettes in Europe has fallen significantly," the company said in a statement, adding that it saw the same trend for roll-your-own tobacco.

Keep ReadingShow less