New retail sales data just released for the four weeks covering 1-28 February has revealed disappointing figures for retail.
UK total retail sales increased by 1.1% year-on-year, against a growth of 1.1% in February last year. This was below the 12-month average growth of 2.3%.
Food sales only increased by 2.9% against a growth of 2.3% in February 2025. Again, this figure is below the 12-month average growth of 3.8%.
In response, Helen Dickinson (below left), chief executive at the British Retail Consortium (BRC), said: “February’s grey, wet weather hit retail sales hard. Spending was weak across most categories, online and instore, as households pulled back after Christmas and January’s rebound. Food sales were flat in real terms as shoppers tightened their belts.
“While retailers look to Spring and better weather to lift spirits and revive sales, conflict in the Middle East threatens knocking any recovery off course. Prolonged low consumer confidence adds strain on retailers already facing mounting cost pressures, higher taxes and a growing regulatory burden.
“At such a time, government’s top priority should be to avoid piling on further cost and complexity and to think carefully about the impacts of aspects of the Employment Rights Act. Without realism and restraint, retailers will struggle to invest in the jobs the economy needs and prices households can afford.”
With regards to food and drink performance, Sarah Bradbury, CEO of the Institute of Grocery Distribution (IGD), took a slightly more optimistic approach, adding: “February delivered one of the wettest months on record, yet shopper sentiment still saw a modest lift thanks to easing inflation and news of a forthcoming 7% cut in energy prices, offering a rare sense of financial reprieve.”
“The conflict in the Middle East is strengthening concerns over fuel costs, which could impact food price inflation…”
Bradbury went on to say that challenges still lay ahead for the sector. “Seasonal spikes around Valentine’s Day and Pancake Day boosted at-home dining but failed to translate into volume growth. As March begins, the outlook is deteriorating.
”The Office for Budget Responsibility’s latest forecast downgraded near term growth, whilst the conflict in the Middle East is strengthening concerns over fuel costs, which could impact food price inflation, if the situation continues. Together, these risks suggest February’s uptick in sentiment may prove short-lived.”
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