The British Retail Consortium (BRC) has just released retail sale figures for the period of 2 February to 1 March, which show growth – albeit very modest.
The UK’s total retail sales increased by 1.1% year-on-year in February, against a growth of 1.1% in February 2024 and below the three-month average growth of 2.4% and above the 12-month average growth of 0.8%.
There was slightly more encouraging news in food sales, which increased by 2.3% year-on-year in February, against a growth of 5.6% in February 2024. This was level with the three-month average growth of 2.3% and below the 12-month average growth of 2.8%.
Helen Dickinson OBE, chief executive, said: “Retail sales saw more modest growth in February. This performance makes many retailers uneasy, especially as they brace for £7bn of new costs, 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.”
Meanwhile Linda Ellett, UK head of consumer, retail and leisure at advisory service KPMG, said: “Online non-food sales growth is outpacing in-store and while shops will always be a key part of many retailers’ strategy - rent, rates, and employment costs all must be factored in.
“As we’ve seen already this year, firms are increasingly scrutinising where best to be located and the implications of the likes of recently announced employment cost rises. Online shopping and the growth of social commerce has contributed to a lowering of demand for some physical retail stores and boardrooms will continue to keep a close eye on monthly footfall and sales data as 2025 progresses.”
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