Retail sales rise 1.2% in February

The ONS has reported today (24 March) that retail sales for February have increased by an estimated 1.2%, following a rise of 0.9% in January, despite a fall in sales volumes of 3.5% when compared to the same month last year. 

In addition, the ONS found that sales volumes fell by 0.3% for three consecutive months in the run-up to February, when compared with the previous three months. 

However, non-food stores sales volumes have risen by 2.4% over the month due to “strong” sales in discount department stores, while online retailers saw sales volumes rise by 0.2% in February. This was followed by a 2.9% rise in January. 

Food store sales volumes also rose by 0.9%, following a rise of 0.1% in January. According to the ONS, “anecdotal evidence” suggests that this is due to reduced spending in restaurants and on takeaways because of cost-of-living pressures.  

In addition, automotive fuel sales volumes fell by 1.1% in February 2023, following a rise of 1.1% in January 2023 when rail strikes may have increased car travel.

Darren Morgan, director of economic statistics at ONS, said: “Retail grew sharply in February with sales returning to their pre-pandemic level. However, the broader picture remains more subdued, with retail sales showing little real growth, particularly over the last eighteen months with price rises hitting consumer spending power. 

“In the latest month, discount department stores performed strongly with food shops also doing well as consumers, confronted with cost-of-living pressures, cut back on eating out or purchasing takeaways.”