(Alliance News) - Retail sales growth in the UK slowed in February, as many consumers prioritise saving and remain cautious with spending, data published by the British Retail Consortium and KPMG showed Tuesday.
Retail sales growth decelerated to 1.1% in the four weeks between February 2 and March 1, from 2.6% the month prior. On a like-for-like basis, it slowed to 0.9% from 2.5%.
BRC Chief Executive Helen Dickinson said that while sales growth across non-food categories was mostly soft, it was boosted by online sales, especially regarding computing and electronics. Further, jewellery, watches and fragrance performed well due to Valentine's Day. Retailers were hopeful that the early March sunshine kickstarts spending on spring and summer clothes.
Dickinson added: "This weak performance makes many retailers uneasy, especially as they brace for GBP7 billion of new costs from the Budget and packaging levy in 2025, as well as the potential impact of the Employment Rights bill. The industry is already doing all it can to absorb existing costs, but they will be left with little choice but to increase prices or reduce investment in jobs and shops, or both. The focus of the Employment Rights bill should be on unscrupulous employers but instead the industry faces ongoing uncertainty and a trajectory that risks punishing responsible businesses who provide valuable employment, particularly at entry level. It is time for government to course correct to ensure investment and growth are not undermined."
Linda Ellett, UK head of Consumer, Retail & Leisure at KPMG said: "Consumers remain cautious with their spending and many are continuing to prioritise saving, travel and experiences. Nervousness about the economy is deferring other big ticket purchasing, but occasions and offers are still tempting shoppers into some impulsive spending. Valentine's, for example, brought a jewellery sales boost to the high street, in what was otherwise a flat month for in-store buying."
By Tom Budszus, Alliance News slot editor
Comments and questions to newsroom@alliancenews.com
Copyright 2025 Alliance News Ltd. All Rights Reserved.