Fragile consumer sentiment is taking its toll on UK retail sales as values fell 0.4% last month compared with February 2010, when sales rose 2.2%.
According to the BRC-KPMG sales monitor, sales were 1.1% higher on a total basis, compared with a 4.5% increase in February 2010.
Food sales picked up after a weak January but non-food sales slowed sharply. Consumers’ underlying uncertainty about jobs and incomes resurfaced, hitting clothing, footwear and homewares. Big-ticket purchases suffered most and were often promotion-led.
Internet, mail-order and phone sales growth fell further in February. Sales were 10.4% higher than a year ago, slower growth than the 12.3% in January and the smallest gain since August 2009.
Stephen Robertson, director general at the BRC, said: “Apart from a bit of help from half-term for some retailers, February’s sales were weak. Other than the negative figures last April (caused by the year-to-year movement of Easter), this February’s 1.1% total sales growth is the poorest since May 2009 – even poorer when the impact of the VAT rise on inflation is taken into account.
“After the big boost to January’s figures from one-off factors, including a strong final burst of pre-VAT rise spending, February’s figures are a return to a more realistic picture of how things are for customers and retailers.
“Even online, the growth in sales of non-food items slowed to an 18-month low. Customers are cautious and cutting back in a big way on non-essential spending.”
annabel.dixon@estatesgazette.com
To access all EGi
news stories and commercial property data sign up for a free trial today, or visit the subscription options page to find out more.
