Retail sales held up better than expected in February as consumers proved they are still ready to celebrate events such as Valentine's Day despite the cost-of-living crisis, according to the British Retail Consortium-KPMG Retail Sales Monitor.
Total UK retail sales were up 5.2% in February against an increase of 6.7% for the same month last year, below the three-month average of 5.5% and above the 12-month average of 2.4%.
Food sales increased by 8.3% over the three months to February and non-food sales were up 3.2%, while online non-food sales fell by 3.1% against a decline of 28% last February.
BRC chief executive Helen Dickinson said: "While the cost-of-living crisis has made customers increasingly price-sensitive, they are still ready to celebrate special occasions.
"This helped deliver strong sales of fragrance and jewellery for Valentine's Day. Energy-saving appliances also continued to sell well, but the rush for warm coats and boots subsided as the January sales splurge satisfied customer appetite.
“The economic backdrop means retailers face volatile trading conditions. Many consumers will be concerned as they prepare for further energy price and tax rises in April," she added.
Gabriella Dickens, senior UK economist, at Pantheon Macroeconomics said: "The most recent BRC data suggest retailers experienced some relief from the recent downward trend in retail sales in February, most likely reflecting a small rebound in consumers’ confidence.
"A pause in the downward trend seems plausible given that GfK’s headline measure of consumers’ confidence rose to an 11-month high in February.
"But we doubt it means consumers are going to hurry to the shops and splurge, given that GfK’s measure still was well below its average since 1978, +9," she added.
She still expects "retail sales to be around 0.2% lower in Q2 than in Q4 2022, before then recovering gradually over the following six months".