UK retail's sector sees 5th consecutive monthly decline in Feb: BDO

07 Mar '24

2 min read

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Insights

The UK retail sector saw a 1.3 per cent decline in LFL sales in February 2024, marking a fifth consecutive month of negative performance, the longest since 2020, per the BDO High Street Sales Tracker.
Despite a drop in store sales by 2 per cent, non-store sales rose by 2.9 per cent.
Fashion sales plummeted, marking the steepest decline since February 2021.

Continuing its downward trend, the UK retail sector experienced a 1.3 per cent decline in total like-for-like (LFL) sales in February 2024 compared to a 6.4 per cent increase in the same month last year, according to the BDO High Street Sales Tracker report. This marks the fifth consecutive month of negative performance, the longest streak of such results since the pandemic-induced closures in 2020.

Store sales experienced a significant downturn, falling by 2 per cent from an 11.3 per cent increase in February 2023. However, non-store sales offered a slight reprieve, growing by 2.9 per cent despite a negative base of -1.2 per cent from last year, as per the report.

Sector-specific performances varied, with lifestyle sales seeing growth, likely buoyed by Valentine's Day sales. Conversely, fashion sales plummeted, marking the steepest decline since February 2021, while homewares also faced significant setbacks.

The report detailed a month of varied weekly performances, beginning with a slight increase in LFL sales in the first week, attributed to the prelude to St. Valentine's Day and the February school half-term. However, sales dipped in the final week of February, recording the lowest weekly result since March 2023.

Challenging weather conditions and the February half-term break contributed to decreased foot traffic throughout the month. Retail parks were the only segment to recover from a negative start, posting positive figures in the latter weeks.

The persistent negative trend underscores broader economic challenges, including ongoing inflationary pressures and the UK's recent dip into a technical recession. Discretionary spending remains constrained, further exacerbated by global supply chain disruptions.

Fibre2Fashion News Desk (DP)

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