UK retail sales fell by 1.8% on a like-for-like basis during February, but food sales rose by 4.3%, according to the latest figures from the British Retail Consortium (BRC).
However, the growth in food sales was slower than it has been in recent months, and was partly driven by inflation.
IGD chief executive Joanne Denney-Finch, said: “February was a month of two halves. The heavy snow that fell in the first two weeks of the month encouraged many people to stock up on food. In the end, the grocery supply chain delivered the goods, keeping the shelves full. So people had less need for food shopping in the second half of the month as they worked through stock-piles.
“Valentine’s Day helpfully fell on a Saturday and many chose to indulge at home instead of eating out. This is a trend we have seen in IGD consumer research, with a third of shoppers telling us that they are eating out less because of the recession.
“Food price inflation is expected to ease in the second half of 2009 as prices are compared with a higher base. However, we anticipate that inflation will remain a feature of the market for some time to come.”
Commenting on the overall figure, BRC director general Stephen Robertson said: “These are disappointing figures. It’s now clear we were right to fear January’s surprise year-on-year sales rise was just a discount-driven blip. The short burst of spending unleashed by January clearances has largely vanished, replaced by sales as weak as most of last year. Food sales are proving more resilient but every non-food sector, apart from children’s clothes, saw like-for-like sales down on a year ago.
“Early February snow didn’t help but customers and retailers’ difficulties run deeper. Meanwhile Government stands by. We’re not looking for handouts but, from business rates increases to a supermarket ombudsman, we don’t need costly new handicaps.”
