Menu
Save, make, understand money

Economy

Retail sales rise for second month in a row

Retail sales rise for second month in a row
Emma Lunn
Written By:
Posted:
28/03/2025
Updated:
28/03/2025

Retail sales volumes are estimated to have risen by 1% in February 2025, according to the Office for National Statistics (ONS).

This follows a rise of 1.4% in January 2025, revised down from an estimated rise of 1.7%.

Monthly sales volumes in February 2025 were at their highest level since July 2022. Sales volumes rose by 2.2% over the year to February 2025.

Non-food stores – the total of department, clothing, household and other non-food stores – rose by 3.1% over the month. This put monthly sales volumes at their highest level since March 2022. Household goods stores rose by 6.8%, their largest monthly rise since April 2021, with hardware stores having the largest upward contribution.

Within other non-food stores, watches and jewellery stores grew strongly over the month. Retailers in this industry reported increased demand for gold because of wider economic uncertainty. Clothing stores also rose in February 2025, but did not fully recover from their 2.7% fall in January 2025.

These rises were partly offset by food stores sales volumes, which fell by 2% on the month, following a 4.8% rise in January 2025. Supermarkets had the largest downward contribution, with retailers commenting on economic factors such as increasing prices.

Sponsored

Why Life Insurance Still Matters – Even During a Cost-of-Living Crisis

Sponsored by Post Office

More broadly, sales volumes rose by 0.3% in the three months to February 2025 compared with the three months to November 2024, and by 2% when compared with the three months to February 2024.

Charlie Huggins, manager at Wealth Club, said: “Retail sales volumes came in better than expected in February. The trends from last month effectively reversed with food sales falling after a very strong January and non-food categories rebounding following last month’s weakness.

“These figures, along with yesterday’s better-than-expected results from retail bellwether Next, indicate that consumers are still feeling confident enough to spend despite the gloomy economic headlines.

“However, in order to get consumers to part with their cash, retailers are having to work harder than ever before. This means increased levels of discounting – a good way to drive sales in the short term, but not necessarily great for profit margins.”