The figures were released by the British Retail Consortium (BRC) and KPMG retail sales monitor and while the overall retail figure falls short of the three-month average growth rate of 2.4%, it exceeds the average annual growth rate of 0.8%.
With the arrival of sunnier days in early March, retailers are optimistic about a rebound in consumer spending on clothing for the upcoming spring and summer seasons.
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British Retail Consortium chief executive Helen Dickinson said: “Retail sales saw more modest growth in February. While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics.
“Fashion performed poorly due to the gloomy weather throughout the month, but retailers are hopeful the early March sunshine kickstarts spending on Spring and Summer wardrobes.”
During the period between 2 February and 1 March 2025, sales in the non-food sector remain flat compared to the previous year, which is an improvement over the 2.7% decline observed in February 2024.
However, these figures did not meet the three-month average growth rate of 2.5% but did exceed the 12-month average drop of 0.9%.
Physical store sales within the non-food category saw a year-on-year decrease of 1.0% in February, which is a slight improvement from the 1.8% decrease reported in February 2024.
These numbers were lower than the three-month average growth rate of 0.8% but higher than the 12-month average decline of 1.7%.
Conversely, online non-food sales showed an uptick, with a year-on-year increase of 1.9% in February, contrasting sharply with a decline of 4.1% in February 2024.
While these figures fell below the three-month average growth rate of 5.3%, they were above the 12-month average growth rate of 0.6%.
The online penetration rate for non-food items also rose to 36.4% in February compared to 35.8% in February 2024.
Under the online sales category growth rankings, house textiles, health and beauty, and other non-food categories showed growth in February compared to January while clothing, footwear and home accessories were down.
Helen Dickinson added: “This weak performance makes many retailers uneasy, especially as they brace for £7bn of new costs from the Budget and packaging levy in 2025, as well as the potential impact of the Employment Rights Bill. The industry is already doing all it can to absorb existing costs, but they will be left with little choice but to increase prices or reduce investment in jobs and shops, or both.
“The focus of the Employment Rights Bill should be on unscrupulous employers but instead the industry faces ongoing uncertainty and a trajectory that risks punishing responsible businesses who provide valuable employment, particularly at entry level. It is time for government to course correct to ensure investment and growth are not undermined.”
In January this year, a survey by the BRC encompassing 52 UK retail sector chief financial officers revealed that two-thirds of respondents (67%) plan to increase prices due to higher National Insurance costs from April.
KPMG consumer, retail & leisure UK head Linda Ellett said: “Consumers remain cautious with their spending and many are continuing to prioritise saving, travel and experiences. Nervousness about the economy is deferring other big ticket purchasing, but occasions and offers are still tempting shoppers into some impulsive spending. Valentine’s, for example, brought a jewellery sales boost to the high street, in what was otherwise a flat month for in-store buying.”
