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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 good 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.”