In February, the UK retail sector encountered some challenges as overall sales volumes experienced a slight decline. However, there was a glimmer of hope as the clothing sector saw a notable increase in sales.
According to the Office for National Statistics (ONS), retail sales volumes dropped by 0.3% on a month-on-month basis in February. Despite this decline, sales were still 3.7% higher than the levels recorded in February 2020, pre-pandemic. While the overall performance was lackluster, specific sectors showed promising growth.
Sales volumes in non-food stores saw a positive uptick of 0.6%. Among these sectors, clothing sales stood out with a significant increase of 13.2%. Department stores also experienced growth, although at a slower pace of 1.3%. Analysts attribute these positive figures to the easing of restrictions, increased socializing, and the return to offices following the lifting of Plan B measures in January.
On the other hand, non-store retailing, primarily online sales, faced a decline in sales volumes by 4.8% in February. This decline followed strong growth in December (2.7%) and January (4%). However, non-store sales volumes remained significantly higher, with a 33.2% increase compared to pre-pandemic levels.
When comparing sales volumes to February 2021, the figures may be less informative due to the full lockdown in the UK during that period. Sales volumes showed a positive trend, rising by 7% compared to the same time last year. In terms of value, sales experienced an even greater growth of 11.1%, reflecting the impact of inflation. The rise in prices could have contributed to the decline in non-store sales volumes, as consumers may have become more cautious about affordability. Additionally, the decreased concern among consumers regarding Covid variants in physical stores also played a role in the shift away from online shopping.
Overall, the retail sector in the UK experienced mixed fortunes in February. While overall retail sales volumes declined slightly, the clothing sector enjoyed a notable boost. As the economy continues to recover and restrictions ease further, it will be interesting to see how consumer behavior and retail sales evolve in the coming months.
Useful links:
1. BBC – UK retail sales fall as online shoppers shift to physical stores
2. The Guardian – UK retail sales decline as consumers prioritize quality over quantity
