UK retail sales rise for the second consecutive month, according to the ONS

Retail sales volumes are estimated to have increased by 1% in February following a 1.4% rise in January.

Monthly sales volumes in February were at the highest level since July 2022, with a 0.3% rise in the three months to February compared to the quarter to November 2024.

Food store sales volumes declined 2% month on month, following a 4.8% rise in January. Increasing prices were cited as a potential reason for this downturn.

Non-food stores saw a 3.1% rise in February, reaching their highest level since March 2022.

Clothing stores grew 2.2%, department stores grew 2.6%, while household goods stores increased 6.8% with hardware stores having the largest upward contribution.

The ONS said watches and jewellery stores also grew strong over the month as retailers reported increased demand for gold due to “wider economic uncertainty”.

Online spending values increased 3.3% in February, with a 3.9% rise year on year.

Alvarez & Marsal European and consumer lead Erin Brookes said: “UK retail sales surprised again in February, offering a welcome boost to the sector. As we move into spring, retailers will be hoping that the early March sunshine is the start of a period of growth and that demand across Easter, DIY, summer fashion and outdoor items will sustain revenues.

However, strong sales have not taken the sting out of the upcoming policy changes, with retailers footing the bill for minimum wage and National Insurance contribution increases. In addition, the Spring Statement did little to ease these pressures, with uncertainty around business rates persisting. 

“The chancellor’s message will likely hit consumer confidence further as the government makes more spending cuts and growth remains sluggish. In the face of this, many retailers are taking pre-emptive action, via cost-cutting and price increases. 

“The sector as a whole remains fiercely competitive, and we predict the next 12 months will show polarised performance across the sector as management teams face more disruption.”