UK retail sales increased at an annual rate of 1.1% in February, below the 2.4% average of the past three months.
The British Retail Consortium said that sales for its member stores, made up mainly of large retail chains, increased by 1.1%.
BRC chief executive, Helen Dickinson said the weaker growth reflected low demand for spring fashions and repeated complaints about higher employer social security and packaging taxes that take effect next month.
She said: “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.”
Non-food sales were flat year-on-year. Brick-and-mortar non-food sales saw a 1% decline in the month, below the three-month average growth of 0.8%.
Online non-food sales increased by 1.9% year-on-year, bouncing back from a 4.1% decline in February last year.
Linda Ellett, UK head of consumer, retail and leisure, KPMG, commented: “Consumers remain cautious with their spending and many are continuing to prioritise save, travel and experiences. 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.
“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.”
Data from Barclays showed that consumer spending rose by 1% in February, slowing from 1.9% in January. However Barclays’ survey of household confidence in their own finances rose to its highest since records began in 2015, to 75%.
