Retail sales recover slightly in February driven by DIY purchases
Retail sales ticked up slightly in February compared to the previous month, as purchases of DIY and household goods offset a steep drop in demand for new shoes and clothing.
Sales volumes increased 2.1 per cent following a 8.2 per cent drop in January, with the strongest growth seen in department stores and household goods stores of 16.2 per cent and 16.1 per cent respectively.
The Office for National Statistics, which published the data this morning, said the increase in department stores comes from budget chains that have been able to keep their physical stores open during restrictions.
However, sales were still down 3.7 per cent compared to the previous year, before the coronavirus pandemic began in the UK.
Clothing retailers suffered a 50.4 per cent decline in sales volumes compared to 2020, while fuel stores fell 26.5 per cent on the previous year due to continuing travel restrictions.
In the three months to February 2021, retail sales volume fell by 6.3 per cent when compared with the previous three months, with strong declines in both clothing stores and other non-food stores.
The proportion spent online increased to 36.1 per cent in February 2021, the highest on record; this compares with 35.2 per cent in January 2021
Silvia Rindone, EY UK & Ireland retail leader, said: “The ongoing closure of non-essential stores continued to limit overall retail sales in February.
“Figures were again below average compared with previous years, but online sales have continued to enjoy significant growth.
“However, consumers are becoming more discerning when it comes to the online shopping experience, so retailers must continue to improve their online offer and not take continued growth in this area for granted.”
“Refreshing wardrobes used to be a regular past time for UK consumers but buying clothes has fallen seriously out of fashion,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
She added: “With working from home at least for part of the week, likely to be the new normal going forward, many employees have been trying to create a more permanent alternative to the kitchen table or corner of the bedroom. Dividing open plan rooms and building garden offices are among the building projects being undertaken, as workers settle in at home for the long haul.
“There has been particular demand for outdoor products and it seems that people are getting well prepared to socialise once more.”