UK retail sales defy expectations with a 1% rise

By Tuba Ongun

UK retail sales unexpectedly grew by 1% in February, defying market estimates of a 0.3% decline, according to data released Friday by the Office for National Statistics (ONS).

The growth came after a downwardly revised 1.4% rise in January, reflecting resilience in consumer spending.

Sales volumes in February reached their highest level since July 2022, bolstered by a 3.1% rise in non-food stores, which include department, clothing, household, and other retail outlets.

Household goods stores led the charge, posting a remarkable 6.8% increase—their largest monthly rise since April 2021—driven by strong performance in hardware stores.

In contrast, food store sales volumes fell by 2% month-on-month in February, following a robust 4.8% surge in January. Supermarkets accounted for the largest drag, with retailers attributing the decline to rising prices and other economic pressures.

On an annual basis, retail sales volumes grew by 2.2% in February.