UK retail sales flop in February as storms hit hard

Storm Ciara, Dennis and Jorge took their toll on UK retail sales last month.

According to research by the BRC and KPMG, on a total basis sales increased by 0.1% in February, against a rise of 3.2% in February 2019. Bearing in mind the aforementioned storms, it’s unsurprising that online fared better (albeit fractionally) than the high street. Generally, though, demand for non-food items remains woefully low.

“Despite many indicators suggesting a rise in confidence among UK shoppers in recent months, this has failed to translate into higher retail sales. However, the end of the month saw a slight rise in spending on food and healthcare as a result of concerns around coronavirus,” says Helen Dickinson, Chief Executive at British Retail Consortium.

“Retailers are working hard to reduce their environmental impact, keep supply chains working smoothly and investing in new technologies. However, they are hindered by government policies, such as sky high business rates, which limit investment.”

“The highly anticipated ‘Boris Bounce’ has clearly struggled to materialise in the embroiled retail sector, and looking ahead Covid-19 isn’t likely to help matters,” adds Paul Martin, UK Head of Retail at KPMG.

“Subdued grocery has shown a slight recovery, although the edging up of prices will have contributed to that growth. In the short-term, any potential supply chain disruption caused by Covid-19 will be felt acutely by grocers, so developments will have to be watched closely.”