Wettest February on record dampens consumer demand - British Retail Consortium

05 March 2024 , 09:41

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Regular downpours last month brought gloom to retailers (Image: PA Wire/PA Images)

Retailers suffered a miserable month of sales due to the wet weather keeping shoppers away, with toy sales the only bright spot as parents tried to keep their children entertained indoors.

Overall sales rose by just 1.1% compared to last year, down from 5.2% in February 2022, according to the British Retail Consortium (BRC) and KPMG. Food sales increased by 6%, but this was lower than the 8.3% growth seen in February last year.

Non-food sales fell by 2.5%, compared to a 3.2% rise in February 2022, and were worse than the 12-month average decline of 0.9%. BRC chief executive Helen Dickinson said: "Consumer demand was dampened by the wettest February on record, translating into a poor month of retail sales growth."

"Not even Valentine's Day lifted customers out of the gloom, and gifting products that typically sell well, like jewellery and watches, failed to deliver. On the sunnier side, rainy weather did brighten sales of toys, as parents looked for ways to occupy their children indoors."

Linda Ellett, UK head of leisure and retail consumer markets at KPMG, said: "As many households continue to adapt budgets to meet higher essential costs, including higher mortgage rates, consumer reluctance to get out there and start spending is likely to remain in the short term."

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"With big increases in labour costs and business rates just weeks away, adding to an already stressed cost agenda for retailers, many will be pinning their hopes on some good news in the Chancellors' Spring Budget this week to help kick-start a spending revival on the high street."

Barclays also reported that the wet weather and events like the Super Bowl and Bafta awards kept people at home in February. Takeaways and fast food sales went up 5% compared to last year, while spending on digital content and subscriptions had its highest growth since August 2021, at 11.8%, thanks to new releases like One Day.

Spending on public transport only went up 3.8% the lowest rise since March 2021 as the bad weather and strikes caused train cancellations and delays. Karen Johnson, head of retail at Barclays, said: "February's wet weather meant Brits chose to spend more time indoors, resulting in a slowdown in high-street and hospitality spending."

"With Brits having reined in discretionary spending during the winter months, and as inflationary pressures begin to ease, retailers will be hopeful that the onset of warmer weather lifts spending particularly if consumer confidence improves in the summer."

Lawrence Matheson