Retail sales edge up despite poor fashion performance
New figures from the British Retail Consortium have shown that UK total retail sales increased by 1.1% year-on-year in February, against growth of 1.1% a year earlier.
According to the BRC-KPMG Retail Sales Monitor, food sales edged up 2.3% in the month following growth of 5.6% in February 2024.
Non-food sales were flat year-on-year as fashion sales performed poorly due to the month’s gloomy weather. However, jewellery, watches and fragrances put in a strong performance, driven by Valentine’s Day spending.
Meanwhile, in-store non-food sales decreased by 1% as online sales rose by 1.9%.
Never Miss a Retail Update!Helen Dickinson OBE, chief executive of the British Retail Consortium, said: “ “This weak performance makes many retailers uneasy, especially as they brace for £7 billion 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.”
