UK Retail Sales Plunge 0.3% on Cost of Living Crisis

Source: Office for National Statistics

Britain’s retail sales fell unexpectedly in February despite the easing of COVID-19 restrictions as the cost of the living crisis started to hurt households. FTSE 100 up +0.36%, GBPUSD up +0.02%

• Online shopping fell back towards pre-pandemic levels as winter storms kept people away from the high street, and spending at food and drink retailers fell as customers returned to restaurants.
• Sales volumes edged down by 0.3% month-on-month, below the 0.6% increase estimated by economists.
• Sales volumes at food stores dropped by 0.2% in February 2022, with bigger falls in alcohol and tobacco stores.
• Sales excluding volatile fuel items dropped by 0.7% in the month, and more declines in spending might occur as consumers struggle with a cost-of-living crisis.
• Non-food stores sales volumes increased by 0.6%, with growth in clothing, 13.2%, and department stores, 1.3%.
• February’s fall comes after a 1.9% increase in retail sales volumes in January.