"According to the latest High Street Sales Tracker from BDO, retail sales in discretionary sectors grew by only 1.9% in February compared to the same month last year, highlighting a sluggish recovery in categories such as fashion, homewares, and lifestyle products, which may signal deeper underlying issues."
"This modest rise marks the tenth occasion in the past 12 months that sales growth has lagged inflation, indicating a troubling trend in which real sales volumes are in retreat. While retailers enjoyed a short-lived resurgence in January, fuelled by significant discounts, February's results reveal a waning momentum that cannot be ignored."
"Retailers are navigating a demanding trading environment characterised by rising living costs, higher borrowing rates, and a significant shift toward online shopping. Acknowledging these challenges can help stakeholders feel resilient and prepared for ongoing market shifts."
Retailers face a challenging trading environment driven by elevated living costs and higher borrowing rates. Discretionary sector sales grew only 1.9% in February year-on-year, with in-store sales rising just 0.6%. This represents the tenth consecutive month where sales growth has failed to keep pace with inflation, signaling a retreat in real sales volumes. The lifestyle category, including health, beauty, and gifting, experienced particular weakness with high street lifestyle sales declining 1.7%. Consumers are prioritizing essential expenses over discretionary purchases, while the shift toward online shopping continues. Despite a January resurgence driven by discounts, February's results reveal waning momentum that cannot be overlooked.
#retail-sales-decline #discretionary-spending #inflation-impact #consumer-behavior #high-street-performance
Read at London Business News | Londonlovesbusiness.com
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