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February sales up but figures distorted by snow

Published: 9 March 2010
UK retail sales values rise 2.2% in February, with homewares returning to growth but BRC stresses that comparisons are weak as a result of snow and a poor economic outlook last year.
February sales up but figures distorted by snow
According to figures from the BRC-KPMG Retail Sales Monitor, the increase in sales values is on a like-for-like basis from February 2009, when sales had dropped 1.8%, hit by snow and consumer caution. On a total basis, sales rose 4.5% against only 0.1% growth in February 2009.

Non-food recovered last month, having taken a dive with the snow in January. However, growth was often against larger declines a year ago. According to the BRC, homewares and furniture returned to growth, while non-food non-store sales in February were 15.5% higher than a year ago, compared with 14.6% in January.

British Retail Consortium director general Stephen Robertson said: "Despite appearances, these results are not strong. The growth is compared with very weak figures a year ago when February saw the worst of last winter's weather and this February's performance was helped by sales postponed from January - particularly sales of non-food items such as homewares and fashion."

He added: "Consumer confidence is certainly up on this time last year but, with unemployment rising again, spending plans are falling. When the weather-related distortions are stripped away, it's clear customers are still cautious."

KPMG head of retail Helen Dickinson commented on the results: "As the month progressed, clothing and footwear...as well as home accessories and textiles, continued to perform well, as they had done in January. However, other non-food sectors were not so fortunate, highlighting the difficulties in enticing discretionary spending given the political and economic uncertainties ahead. The consumer remains cautious and confidence fragile."

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