Retail gross sales flatlined in February as “extraordinarily” moist climate postpone consumers from heading to the excessive avenue.
There was 0% progress within the sector final month, in response to new figures from the Workplace for Nationwide Statistics (ONS) on Friday.
It mentioned an excellent efficiency for garments outlets and department shops was offset by falls in meals and gas gross sales, presumably due to rising costs on the pumps.
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Nonetheless, it seems the climate additionally had a serious impression as shoppers additionally shunned in-person shops in favour of on-line buying.
February was one of many wettest since information started, with the south of England experiencing greater than twice the extent of common rainfall.
Heather Bovill, deputy director for surveys and financial indicators on the ONS, mentioned: “Many outlets instructed us that a particularly moist February lowered in-store gross sales.
“However, with folks staying indoors, we noticed a lift of two.1% within the quantity spent on-line.”
February’s determine was higher than the -0.3% progress predicted by economists in a Reuters ballot.
It additionally comes following a shock, better-than-expected improve in retail gross sales in January.
The ONS mentioned on Friday it had revised January’s determine from 3.4% to three.6%.
Buyers ‘nonetheless hesitant’
Kris Hamer, director of perception on the British Retail Consortium (BRC), mentioned the moist climate had “dampened demand and depressed footfall”.
He added: “This was felt most within the extra high-ticket classes similar to furnishings and electricals. In the meantime, cosmetics and toiletries continued to promote effectively as well-liked manufacturers go from power to power.
“Retailers are hopeful that with hotter climate and potential rate of interest cuts across the nook, client confidence will quickly spring again.”
The BRC additionally renewed its name for the “subsequent authorities” to “handle the excessive and rising price burdens that retailers face, now and sooner or later”.
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Lisa Hooker, chief of business for client markets at PwC, mentioned it was “little shock that retail gross sales had been unable to proceed the momentum of the obvious bounceback witnessed in January’s numbers”.
She added: “Total, February’s retail gross sales figures affirm that, regardless of falling inflation, a 2% reduce in nationwide insurance coverage initially of 2024, and enhancing client confidence of their private funds, consumers are nonetheless hesitant to half with their hard-earned money.
“With inflation forecast to fall to the Financial institution of England’s 2% goal in April, along with a 9.8% rise in nationwide residing wage and an additional 2% reduce to nationwide insurance coverage, retailers might be hoping that the spring brings inexperienced shoots after a difficult final 18 months.”
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Danni Hewson, head of monetary evaluation at AJ Bell, mentioned: “No surprises that February’s downpours stored folks off excessive streets and tucked up of their dry residing rooms.
“However shoppers had been tempted by new season collections and turned again to on-line buying to develop their wardrobes.
“Identical to final July the proportion of on-line gross sales shot up as consumers made essentially the most of promotions so as to add a splash of spring color to their working apparel, even when winter remained firmly entrenched exterior the door.”
