- Retail sales up 1.2% in February – the largest increase since October 2022
- Non-food sales rose 2.4% – bolstered by department store sales
- Food sales jump 0.9% with suggestions people are saving cash by eating in
Danni Hewson, AJ Bell head of financial analysis, comments on the latest retail sales figures:
“Looking at the latest retail sales figures you might be forgiven for wondering if Britain really is in the middle of a cost-of-living crisis. But pop the hood and the reality is laid bare. Consumers appear to be choosing supermarkets over takeaways and snapping up bargains wherever they can.
“Yes, sales are back to pre-Covid levels but that just shows an economy that’s stagnant. And compare how much people are paying for the privilege of buying the same amount of stuff they did three years ago and that’s up a staggering 16.6%.
“People are hunting out bargains whether they’re found in the sales aisles being well stocked by department stores, or in charity shops or other second-hand emporiums.
“Purchasing power has been eroded and some retailer’s books clearly show the sector is paying a high price.
“The rebound in sales since what was a particularly gloomy Christmas for the sector has surprised on the upside, especially when you consider February also delivered that broadly unexpected uptick in inflation.
“But consumers are being forced to put their purchases on credit, with figures out yesterday from Nationwide showing almost 4 in 10 people were having to pay for essentials on tick.
“Heating or eating might be the choice which is grabbing headlines, but if your child’s school trousers are beginning to look more like shorts, clothing shoots to the top of the must buy list.
“There are some people for whom the current crisis is only a headline, but most households are thinking carefully about every penny they spend. There is still room in many budgets for little luxuries, but they will be carefully costed and discarded if other demands crop up.
