Grocery sales fall in February after strong start to year

Despite a very strong start to the year, food sales fell back in February, particularly across supermarkets.

The latest retail sales figures from the ONS show that overall retail sales jumped again in February, however grocery suffered a setback.

Retail sales volumes are estimated to have risen by 1.0% in February, following a rise of 1.4% in January this year. Non-food store sales volumes grew strongly across the month, with rises in all four sub-sectors (department, other non-food, clothing and household goods stores).

However, supermarket sales volumes fell by 2.0% on the month, following a 4.8% rise in January. The ONS noted supermarkets had the largest downward contribution, with retailers commenting on economic factors such as increasing prices.

Commenting on the latest retail sales index, Head of Retail at PwC UK, Jacqueline Windsor said it was clear that consumer confidence continues to be fragile.

“February’s retail sales figures continued the bounceback experienced at the start of the year, with overall sales excluding petrol growing by 2.2% compared with last year in volume terms,” said Jacqueline.

“Although grocery sales slowed despite the benefits of Valentine’s Day and half-term holidays, almost every other category saw modest sales increases.

“However, despite the green shoots that February’s retail sales data represents, it is not typically a significant month for retailers, and compares against a weak February last year. Overall, it’s clear that consumer confidence remains fragile and that is translating into subdued demand.

“Looking ahead, March will not be helped by the later timing of Easter this year, while April sees a wave of cost increases including National Living Wage, National Insurance and business rates. With no respite announced in the Chancellor’s Spring Statement, retailers will be hoping that at least some of the extra pounds in shoppers’ pockets gets spent in stores.”