Food sales fell in February, particularly for supermarkets, in contrast with growth in wider retail.
Retail sales volumes were up by 1.0%, according to new ONS data, following a 1.4% rise in January.
However, growth was offset by food store sales volumes falling by 2% on the month, following a 4.8% rise in January. Supermarkets had the largest downward contribution, with retailers commenting on economic factors such as increasing prices, according to the ONS.
“Retail sales jumped again in February, with increases across most sectors,” said ONS senior statistician Hannah Finselbach.
“However, after a very strong January, food sales fell back this month, particularly across supermarkets.”
Sagar Shah, associate partner at McKinsey & Company, said the 2% decline in food sales by volume could be “attributed to a desire to eat out in warmer weather”, while growth of 6.8% in the household goods category “might have been influenced by a desire to prepare for the spring”.
Year on year, total UK retail sales increased by 3% in value and 2.2% in volume.
In the three-month period to February 2025, retail sales volumes were up 0.3% on the preceding quarter and 2% year on year.
February “was a positive month for household goods stores with their largest rise since April 2021, driven by hardware store sales,” said Finselbach. “Clothing sales also picked up a little, due to falling prices from widespread discounting.
“Looking at the wider trend, retail sales are now showing growth across both the three-month and annual period, but remain below pre-pandemic levels.”
Despite the “solid boost to their sales in February”, BRC director of insight Kris Hamer warned rising costs this year meant retailers were holding back on investment in stores and jobs.
“While the rain clouds may have gone away, retailers face £7bn in new costs in 2025,” he said. “Furthermore, the uncertainty around the Employment Rights Bill and the new business rates reform mean that retailers are hesitant to invest in new stores and jobs.
“Government must provide clarity in these policy areas as soon as possible to allow businesses to plan accordingly. This will ensure the retail industry is best positioned to support the government’s growth agenda, which the Chancellor espoused in her spring statement.”
Erin Brookes, European retail and consumer lead at Alvarez & Marsal, said: “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.
“The spring statement did little to ease these pressures, with uncertainty around business rates persisting.”
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