UK retail sales fell short of expectations in February, with the BRC Retail Sales Monitor rising a flat 1% year on year and missing the 1.5% mark expected by the market.
Bad weather and persistent cost-of-living pressures weighed on sales, with February's figure the lowest since August 2022.
Sales of non-food items declined by 2.5% in the three months to February, while food sales over the past three months increased by 6%.
Helen Dickinson, chief executive at the BRC, commented: “Consumer demand was dampened by the wettest February on record, translating into a poor month of retail sales growth. Not even Valentine’s Day lifted customers out of the gloom.”
The writing was on the wall for today’s data print after a survey from accounting firm BDO released yesterday suggested retail sales had slumped 1.3% in the month.
According to BDO, fashion sales dropped for the 22nd week in just under half a year, falling by 4.8%, while homeware revenues dropped by 4.1%.
High street sales experienced a 2% year-on-year drop, counteracting a 2.9% surge in online business, with colder, more inclement weather and the school half-term having reduced footfall throughout most of the month.
“Retailers will increasingly be challenging themselves and asking whether certain stores are viable, or if the costs of running their existing physical footprint are simply too high,” said Sophie Michael, head of retail and wholesale at BDO.
“We should expect to see more consolidation of brands and acquisitions over the next six months as a result.”