Sales in Britain returned to growth in February despite the shutdown as shoppers bought online and spent on improving their homes and gardens.
Sales in Britain rose 2.1 per cent in February compared with the previous month, data from the Office for National Statistics showed on Friday.
This was in line with analysts ’expectations and returned to the level of the sharp 8.2 percent decline in January.
Jonathan Athow, ONS deputy national statistician for economic statistics, said: “Food and sector stores have benefited from the need for openness to be open with end-of-budget department stores seeing more sales. ”
He also said that household goods also prospered, with retailers reporting that spending on home improvement and outdoor products encouraged sales as consumers prepared to reduce locking rates.
Non-essential sales in England are expected to open on April 12 and retailers will “hope that the wave of optimism will change as a result of successful vaccine rollout to more sales,” said Lisa Hooker, director of consumer markets. at the PwC counseling.
With non-essential stores still closed, the proportion spent online rose to 36 percent in February, the highest ever and 16 percentage points higher than the same month last year.
The move to online may not be completely reversed by the reopening, suggested James Smith, an economist at ING investment bank. “This is a story that is long before the epidemic and was only accelerated by locks.”
Non-food stores made the largest positive contribution to monthly growth in February, boosted by a strong 16 percent increase for both department stores and household goods stores.
Retailers suggested that strong growth could be driven by the purchase of DIY products while consumers continued to improve their homes at the time of the lockout, the ONS said.
They also noted that buyers bought outdoor produce earlier to prepare for a chance to meet friends and relatives in private gardens as restrictions easily come in from March 29th.
Howard Archer, chief economic adviser at EY Subject Club, said: “The small reversal in retail sales adds to the evidence that the economy has fallen to its lowest levels in January and February. ”
Compared to February 2020, prior to the pandemic, sales were down 1.1 percent when fuel is banned. This fall is much milder than the general economy, with consumers shifting to buying goods, such as food and fitness equipment, rather than services, such as restaurant food and gym sessions.
However, clothing retailers have continued to suffer as people work from home and have little social interaction. Sales at these stores were down 50 percent compared to February 2020, the biggest drop across all sectors.
Ayush Ansal, chief investment officer at London-based hedge fund Crimson Black Capital, said: “Sitting on your sofa watching Netflix is free of wear and tear, and there are no nights out. means much less need for new clothes. ”