UK retail sales show modest growth in February: BRC

The UK’s total retail sales saw a modest increase of 1.1 per cent year on year (YoY) in February 2025, matching the growth recorded in February 2024. However, the figure fell short of the three-month average growth of 2.4 per cent but remained ahead of the 12-month average of 0.8 per cent, as per the British Retail Consortium (BRC)  - KPMG Retail Sales Monitor.

Non-Food sales remained flat compared to the same period last year, which had recorded a 2.7 per cent decline. While this was below the three-month average growth of 2.5 per cent, it fared better than the 12-month average decline of 0.9 per cent.

Brick-and-mortar Non-Food sales continued to struggle, posting a 1.0 per cent decline YoY. While this was an improvement from the 1.8 per cent decline recorded in February 2024, it was below the three-month average growth of 0.8 per cent. Nonetheless, it outperformed the 12-month average decline of 1.7 per cent.

Online Non-Food sales provided a brighter spot, rising by 1.9 per cent YoY, bouncing back from a sharp 4.1 per cent decline in February 2024. Despite this positive momentum, the growth remained lower than the three-month average of 5.3 per cent. However, it was still above the 12-month average growth of 0.6 per cent.

The online penetration rate, which measures the proportion of Non-Food purchases made online, climbed to 36.4 per cent in February, up from 35.8 per cent a year earlier. While this showed an improvement, it remained slightly below the 12-month average of 36.7 per cent.

“Retail sales saw more modest growth in February. Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on Spring and Summer wardrobes.” Helen Dickinson OBE, chief executive of the British Retail Consortium, said in a release.

“Consumers remain cautious with their spending, and many are continuing to prioritise saving, travel and experiences. Online non-food sales growth is outpacing in-store and while shops will always be a key part of many retailers’ strategy - rent, rates, and employment costs all must be factored in. Online shopping and the growth of social commerce has contributed to a lowering of demand for some physical retail stores and boardrooms will continue to keep a close eye on monthly footfall and sales data as 2025 progresses," said Linda Ellett, UK head of consumer, Retail & Leisure, KPMG.

Fibre2Fashion News Desk (HU)