Valentine’s Day bright spot in otherwise gloomy February for retailers
Jewellery, watches and fragrances sold well thanks to Valentine’s Day, and furniture also returned to growth.
Impulsive spending for Valentine’s Day brought relief for retailers amid otherwise cautious consumer behaviour in February, figures show.
Total UK retail sales increased by 1.1% year-on-year in February, against growth of 1.1% last February but above the 12-month average growth of 0.8%, according to the BRC-KPMG Retail Sales Monitor.
Food sales were up 2.3% on a year ago, but this was against growth of 5.6% last February and below the 12-month average growth of 2.8%.
Non-food sales were flat, against a decline of 2.7% a year ago and a 12-month average decline of 0.9%.
BRC chief executive Helen Dickinson said: “Retail sales saw more modest growth in February. While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics.
“Jewellery, watches and fragrance sold well thanks to Valentine’s Day, reversing declines seen last year, and furniture also returned to growth. Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kick-starts spending on spring and summer wardrobes.”
“This weak performance makes many retailers uneasy, especially as they brace for £7 billion of new costs from the Budget and packaging levy in 2025, as well as the potential impact of the Employment Rights Bill.”
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said: “Consumers remain cautious with their spending and many are continuing to prioritise saving, travel and experiences.
“Nervousness about the economy is deferring other big ticket purchasing, but occasions and offers are still tempting shoppers into some impulsive spending.
“Valentine’s, for example, brought a jewellery sales boost to the high street, in what was otherwise a flat month for in-store buying.”
Separate figures from Barclays show card spending grew 1% year-on-year in February – lower than January’s 1.9% increase – as consumers cut back in anticipation of higher bills.
However, confidence in household finances reached 75%, the highest level Barclays has seen since it started tracking the measure in 2015, and up from 70% in January.
Discretionary spending remained in growth at 2.1% but was offset by a 1% dip in essential spending, suggesting shoppers were finding ways to prioritise lifestyle purchases while making savings, the bank said.
Despite these improvements, 89% of consumers say they are concerned about rising household bills, with water, energy and council tax among the essential costs set to increase in April.
Karen Johnson, head of retail at Barclays, said: “It’s encouraging to see confidence in household finances reaching a record high as consumers are making conscious adjustments to their essential spending, by reviewing their budgets and setting financial goals.
“Shoppers are clearly seeking more bang for their buck, while prioritising healthy habits, and finding a balance between caution and comfort ahead of the upcoming increases to household bills.”
