UK
retail sales increased 1% in February with non-food store sales including
clothing experiencing a surge according to the Office of National Statistics
(ONS).
ONS says retail sales volumes rose by 0.3% in the three months to February 2025, compared with the three months to November 2024 and by 2.0% when compared with the three months to February 2024.
During February non-food stores rose
strongly on the month, while food stores fell
Clothing was up 2.3% year over year. Online sales grew by 0.7%.
Overall, non-food retail sales increased by
3.1% during February. This put monthly sales volumes at their highest level
since March 2022.
Charlie Huggins, Manager of the
Quality Shares Portfolio at Wealth Club:
“Retail sales volumes came in better than
expected in February. The trends from last month effectively reversed with food
sales falling after a very strong January and non-food categories rebounding
following last month’s weakness.
“These figures, along with yesterday’s
better-than-expected results from retail bellwether Next, indicate that
consumers are still feeling confident enough to spend despite the gloomy
economic headlines.
“However, in order to get consumers to part
with their cash, retailers are having to work harder than ever before. This
means increased levels of discounting – a good way to drive sales in the short
term, but not necessarily great for profit margins.
“The key test for UK consumers is still to
come. The UK employment market is starting to show cracks and cutbacks to
public spending announced in the Spring Budget will only add to that pressure.
Trump’s tariffs only add to the feeling of uncertainty.
“For now, the UK consumer appears to be
holding up. But risks to the economy are building and retailers remain stuck
between a rock and a hard place. One thing is for sure – they cannot afford to
rest on their laurels.”
Matt Jeffers, Retail Strategy and
Consulting Managing Director for Accenture in the UK & Ireland:
“February’s Valentine’s Day retail sales
proved consumers are still willing to spend when the moment feels right.
Tapping into that appetite for celebration around Easter, Eid and the spring
bank holidays, and capitalising on improving weather through targeted
promotions and marketing, will be key to keeping momentum going through to the
late Easter break to avoid hurting sales in March.
“But retailers face a challenging few months
as economic uncertainty continues, with tax changes and new packaging rules
tightening the squeeze. To stay ahead, retailers must double down on innovation
– streamlining supply chains, embracing tech, and delivering the personalised
experiences today’s value-conscious shoppers expect.”
Silvia Rindone, EY UK&I Retail
Lead:
“Non-food store sales volumes, which
includes department, clothing, household goods stores, saw strong growth last
month, with sales volumes growing by 3.1% over the month – the highest level
since March 2022.
“Despite real wages continuing to grow at a
fast pace, this increase has not yet translated into higher consumer
confidence, which remains subdued. Ongoing geopolitical tensions and rising
wage costs have meant retailers are continuing to navigate an uncertain trading
environment.
“However, with Easter and school holidays on
the horizon, typically periods of increased spending, retailers are hoping for
a boost in sales as the weather improves and consumers invest in spring/summer
apparel.
“Retailers must remain agile and focused on
customer-centric strategies to thrive amidst these challenges. Building a
broader proposition that goes beyond selling products, for example designing
service offerings that effectively solve customer problems, and investing in
strong brands that drive trust will be crucial for differentiation in a
competitive market.”
Greg Zakowicz, senior e-commerce
expert at Omnisend:
“February was less disrupted by extreme
weather than January, household budgets stabilised following Christmas and
there were no major strikes or disruptions that would contribute to a decrease
in footfall.
“We’re also seeing increased engagement
online, where retailers offer real-time stock visibility, personalised product
recommendations, and flexible payment options. Mobile remains the primary
driver, with over 60% of e-commerce traffic now originating from smartphones.
“This trend underscores the importance for
e-commerce businesses to enhance their digital platforms and offer seamless
online shopping experiences.
“Next’s recent achievement of surpassing £1
billion in annual profits highlights the effectiveness of integrating online
and offline strategies to meet evolving consumer preferences.
“Next is an example of a British high street
giant that is succeeding by diversifying its portfolio. While it is effective
in marketing quality garments, you will likely find a whole host of other
brands being sold on its online business. In-store, you can also find coffee
chains, bakeries and unique partnerships with brands such as Bath & Body
Works. All of which are contributing to its growth and can be replicated by
other large retailers.”
Kris Hamer, Director of Insight at
the British Retail Consortium:
“Retailers are hopeful the March sunshine
will boost footfall and drive more consumer spending.
“While the rain clouds may have gone away,
retailers face £7bn in new costs in 2025. Furthermore, the uncertainty around
the Employment Rights Bill and the new business rates reform mean that
retailers are hesitant to invest in new stores and jobs. The government must
provide clarity in these policy areas as soon as possible to allow businesses
to plan accordingly. This will ensure the retail industry is best positioned to
support the Government’s growth agenda, which the Chancellor espoused in her
Spring Statement.”
Deann Evans, Managing Director,
EMEA, at Shopify:
“Consumers are clearly keen to shake off the
winter blues and get out to enjoy the warmer weather, or at least prepare for
it. For positive growth in March, retailers need to consider how they can
maximise the Spring Equinox and good weather to come by bringing relevant
products to the forefront – while ensuring they have the solutions in place
that will help them serve their customers quickly and effectively.”
Jim Rudall, Head of EMEA at Intuit
Mailchimp:
“February is a key month for marketers,
bringing the first calendar commerce moment of the year in the form of
Valentine’s Day. The industry will therefore be pleased to see encouraging
positive sales figures recorded last month.
“Looking ahead to March and beyond,
marketers must consistently apply effective strategies to maintain sales
growth. Brands that create a sense of community can drive deeper engagement and
long-term retention. Campaigns that align with customer values and make
audiences feel seen can be particularly effective here with our Brand Trust
report revealing that personalised content is the most popular with British
consumers (60%) when it comes to engaging with customers via email.
“Valentine’s
Day is a valuable moment for brands to connect with customers, but
relationships are built year-round, not just in a single month, and the
strategies that drive results in February – including personalisation,
automation, and smart audience engagement – can also deliver results on every other day of the calendar
year.”
By Just Style