Retail sales volumes (quantity bought) are estimated to have risen by 1.0% in February 2025. This follows a rise of 1.4% in January 2025, according to the the latest figures from the Office for National Statistics.
Non-food store sales volumes grew strongly in February 2025, with rises across all four sub-sectors (department, other non-food, clothing, and household goods stores), while supermarket sales volumes fell back following a strong rise in January 2025.
More broadly, sales volumes rose by 0.3% in the three months to February 2025, compared with the three months to November 2024, and by 2.0% when compared with the three months to February 2024.
Silvia Rindone, EY UK&I retail lead, comments: “February’s retail sales figures from the ONS continue to reflect a challenging landscape for retailers as total retail volumes saw marginal growth of 1.0% in February, following a rise of 1.4% in January, according to the latest ONS data.
“However, non-food store sales volumes, which includes department, clothing, household goods stores, saw strong growth last month, with sales volumes growing by 3.1% over the month – the highest level since March 2022.
“Despite real wages continuing to grow at a fast pace, this increase has not yet translated into higher consumer confidence, which remains subdued. Ongoing geopolitical tensions and rising wage costs has meant retailers are continuing to navigate an uncertain trading environment.
“However, with Easter and school holidays on the horizon, typically periods of increased spending, retailers are hoping for a boost in sales as the weather improves and consumers invest in spring/summer apparel.
“Retailers must remain agile and focused on customer-centric strategies to thrive amidst these challenges. Building a broader proposition that goes beyond selling products, for example designing service offerings that effectively solve customer problems, and investing in strong brands that drive trust will be crucial for differentiation in a competitive market.”
Oliver Vernon-Harcourt, head of retail at Deloitte, said: “A second consecutive month of retail sales growth, particularly the better-than-expected results for February, should be reassuring for many retailers. Despite the cold weather snap, consumers still looked to upgrade their wardrobes, while household goods also performed particularly well, perhaps as the half-term break encouraged an early round of spring cleaning and home improvement.
“While these results are positive, and a much needed boost for the sector, there are still headwinds for both consumers and retailers. Food inflation remains high, meaning consumers are buying less, and retailers will be feeling cautious in the build up to changes to wage costs next week. Retail businesses will be focusing on driving efficiency and limiting costs in order to build some resilience in the coming months. However, spring is well and truly around the corner, so there will be hope amongst retailers that a turning of the seasons can bring a boost to confidence and lead consumers to spend more on new fashion, outdoor entertaining and categories like DIY.”
Matt Jeffers, retail strategy and consulting managing director for Accenture in the UK & Ireland, said: “Retailers felt the love in February, as Valentine’s Day helped push sales up for a second consecutive month. Non food stores, including jewellery, clothing and hardware stores rose strongly, while food volumes bucked the trend and fell over the month.
“February’s Valentine’s Day sales proved consumers are still willing to spend when the moment feels right. Tapping into that appetite for celebration around Easter, Eid and the spring bank holidays, and capitalising on improving weather through targeted promotions and marketing, will be key to keeping momentum going through to the late Easter break to avoid hurting sales in March. But retailers face a challenging few months as economic uncertainty continues, with tax changes and new packaging rules tightening the squeeze. To stay ahead, retailers must double down on innovation – streamlining supply chains, embracing tech, and delivering the personalised experiences today’s value-conscious shoppers expect.”
Sagar Shah, associate partner at McKinsey & Company, comments: “The rise in sales of 1% doesn’t paint the whole picture. While volumes crept up, discounting and extended sales periods played a pivotal role.
“The rise in spending in the household goods category by 6.8%, might have been influenced by a desire to prepare for the spring. Contrastingly, the fall in food sales by 2% could be attributed to a desire to eat out in warmer weather.
“Looking ahead, consumer spending intent is mixed. 22% of shoppers say they will spend more on garden furniture and 17% will spend more on hotels in the next three months. However, there are signs of spending pullback in other areas. For example, 39% plan to cut back on clothing, and nearly half (49%) will reduce spending on jewellery.
“Zooming out, easing inflation has yet to translate into stronger sales volume growth. Meanwhile, rising wages are squeezing margins, forcing retailers to rethink their playbook- adjusting the price volume mix through discounting and tweaking promotions.”
