UK retail sales logged only a partial recovery in February as the third lockdown continued to weigh on non-essential goods sales, data from the Office for National Statistics showed on Friday. <\/p>\n
Retail sales volume, including auto fuel, posted a monthly growth of 2.1 percent, in contrast to January’s 8.2 percent decrease. The pace of growth matched economists’ expectations.<\/p>\n
Excluding auto fuel, retail sales gained 2.4 percent on month, in contrast to the 8.7 percent decrease seen in January and faster than the forecast of +1.9 percent.<\/p>\n
Non-food stores provided the largest positive contribution to the monthly growth in February aided by increases in department stores and household goods stores sales.<\/p>\n
Food store sales grew 2.9 percent on month and non-food store sales climbed 4.1 percent. Within non-food sector, clothing and footwear showed the biggest monthly fall of 9.7 percent. <\/p>\n
On a yearly basis, retail sales fell at a slower pace of 3.7 percent after decreasing 5.9 percent in January. This was the second consecutive drop and was better than the expected drop of -3.5 percent.<\/p>\n
Excluding auto fuel, retail sales were down 1.1 percent annually, following a 3.7 percent drop seen in the prior month. Economists had forecast an annual drop of 1.5 percent. <\/p>\n
The proportion spent online increased to 36.1 percent in February, the highest on record. This compared with 35.2 percent in January.<\/p>\n
According to the latest Distributive Trades Survey from the Confederation of British Industry, retailers expect sales to rise in April as non-essential retail shops are anticipated to reopen from mid-April. <\/p>\n
Things will improve when shops are allowed to reopen in April, though a greater consumer focus on services and the trend towards online shopping means the headwinds for traditional high-street retailers are building, James Smith, an ING economist said. <\/p>\n