Retail sales growth in the U.K. slowed in February, when consumer demand was dampened by record rainfall, according to a British Retail Consortium report.
Total retail sales for the four weeks to Feb. 24 increased by 1.1% year-on-year, compared with a 1.2% growth the prior month and a three-month average of 1.4%, according to the BRC-KPMG Retail Sales Monitor report published Tuesday. Annual growth stood at 5.2% in February last year.
Food sales continued to be the main growth driver, with a 6.0% year-on-year increase over the three months to February, compared with growth of 8.3% a year earlier.
Non-food sales over the three months to February decreased by 2.5% year-on-year, compared with a growth of 3.2% a year earlier.
Consumer demand was dampened by the wettest February on record, according to Helen Dickinson, chief executive of the British Retail Consortium. “Not even Valentine’s Day lifted customers out of the gloom, and gifting products that typically sell well, like jewelry and watches, failed to deliver. On the sunnier side, rainy weather did brighten sales of toys, as parents looked for ways to occupy their children indoors,” Dickinson said.
Looking ahead, retailers are expected to continue to experience lower demand in the months to come despite signs of slowing inflation and expected improvement in household finances, according to Linda Ellett, head of consumer markets, leisure, and retail at KPMG U.K.
“With significant increases in labor costs and business rates just weeks away, adding to an already stressed cost agenda for retailers, many will be pinning their hopes on some good news in the Chancellor’s Spring Budget this week to help kick-start a spending revival on the high street,” Ellett adds.