UK retail sales growth slowed to 1.1% in February, down from 1.2% in January and 1.7% in December, as wet weather and ongoing cost-of-living pressures kept shoppers at home, according to the British Retail Consortium (BRC) and KPMG.
Non-food sales fell 2.5% in the three months to February, with declines in footwear, household appliances, furniture, and clothing. Food sales rose 6%, but this was slower than January's 6.3% as inflation eased. Health and beauty, toys, and home accessories were among the few bright spots as families sought indoor entertainment.
Barclays data showed spending on digital content and subscriptions grew 11.8%, the highest since August 2021, driven by new series like Netflix's One Day and the wet weather. In contrast, restaurant spending fell 13.4%, and bar, pub, and club spending growth slowed to 1.1%, the lowest since September 2022.
Karen Johnson, head of retail at Barclays, said: "February’s wet weather meant Britons chose to spend more time indoors, resulting in a slowdown in high street and hospitality spending." Helen Dickinson, BRC chief executive, noted that near-record rain led to a poor sales month, with Valentine's Day failing to boost sales of gifts like jewellery and watches.
The slowdown adds pressure on fashion brands like Superdry, Asos, and Boohoo, as well as household goods retailers like Currys and John Lewis. Online non-food sales dipped to 35.7% of total from 36.1% a year earlier, as shoppers sought to avoid delivery charges. Linda Ellett of KPMG said recent national insurance cuts had not yet boosted high street spending, and retailers hope for stimulus from the spring budget.
