- By Tom Espiner
- Business reporter, BBC News
Image supply, Getty Images
Shop sales noticed zero progress in February as moist climate and cost-of-living pressures saved individuals at dwelling.
While clothes sales elevated, this was offset by falling food and gas sales, based on official figures.
February’s flat sales got here after a lacklustre December adopted by a robust bounce again in January.
Although food worth rises eased in February, individuals remained below stress as a results of housing prices and gas costs.
Economists had predicted that sales volumes would fall barely in February.
However, clothes sales elevated as did sales in department shops as a result of buyers splashed out on the brand new season’s collections.
This increase helped to offset a drop in food sales as buyers stayed away attributable to poor climate.
On the flipside, the climate benefitted on-line retailers, specifically these promoting clothes.
February was the fourth wettest on document in England, and it was the warmest climate on document for England and Wales, Met Office figures present.
In southern England, it was the wettest February on document.
Climate change means the UK climate is on common getting wetter within the winter and drier within the summer, based on the Met Office, and heavy rainfall might get extra frequent and longer if greenhouse gasoline emissions proceed to rise.
Andrew Opie, director of food and sustainability at business group the British Retail Consortium, stated that retailers are more and more having to handle the consequences of local weather change, which has created extra variability within the climate.
“Without action, there is a real risk of food insecurity due to falling global farm yields and increased threats to global supply chains,” he stated.
Along with the climate, the financial local weather additionally contributed to a drop in footfall in food outlets. Sales in family items shops additionally fell, based on the Office for National Statistics.
Households have been squeezed by a cost-of-living disaster, and financial progress has been sluggish, with the UK in a shallow recession on the finish of final yr.
However, the tempo of common worth rises has been slowing, and Prime Minister Rishi Sunak has stated the UK financial system will “bounce back” in 2024.
Economic analysis agency Pantheon Macroeconomics predicted that retail sales would “drag the economy out of recession” within the first three months of the yr.
February’s flat retail sales contrasted with December’s drop of 3.2%, after which a robust bounce again in January.
The ONS has now revised January’s sales figures up from a 3.4% to a 3.6% rise.
Danni Hewson, head of monetary evaluation at AJ Bell, stated it was not a shock that February’s downpours “kept people off High Streets and tucked up in their dry living rooms”.
“After a few tricky months clothing retailers needed a win and those that have toiled to create must-have pieces at a price point that works for their buyer will be feeling a kind of fuzzy relief.”
