Retail sales volumes in February increased by 1.0 percent, following January's revised growth of 1.4 percent. The momentum was driven by strong performances in non-food stores, with household goods surging 6.8 percent, their best since April 2021, boosted by increased demand at hardware shops. Jewellery sales also climbed, attributed to a growing interest in gold amid economic uncertainty. Clothing stores rebounded modestly following January's decline, aided by widespread discounting and falling prices.

In contrast, food store sales dipped by 2.0 percent, reversing part of January's robust 4.8 percent growth. Supermarkets reported that higher prices dampened consumer demand. From a broader perspective, sales volumes rose by 0.3 percent over the three months to February 2025 and were 2.0 percent higher year-over-year.

Online spending also gained traction, increasing by 3.3 percent in February and lifting the share of online sales to 26.5 percent. However, over the quarter, online values declined slightly. While economic pressures persist, particularly in food spending, February's data suggest that consumers are gradually returning to discretionary purchases, signalling cautious optimism in the retail landscape. The latest figures take the UK RPI and RPI-P to 5. This means that economic activities are generally within the consensus of the UK economy.

Sales expected flat in February from January after a 1.7 percent jump in January.

Retail sales measure the total receipts at stores that sell durable and nondurable goods. The data include all internet business whose primary function is retailing and also cover internet sales by other British retailers, such as online sales by supermarkets, department stores and catalogue companies. Headline UK retail sales are reported in volume, not cash, terms but are available in both forms. The data are derived from a monthly survey of 5,000 businesses in Great Britain. The sample represents the whole retail sector and includes the 900 largest retailers and a representative panel of smaller businesses, including internet sales. Collectively, all of these businesses cover approximately 90 percent of the retail industry in terms of turnover.

With consumer spending a large part of the economy, market players continually monitor spending patterns. The monthly retail sales report contains sales data in both pounds sterling and volume. UK retail sales data exclude auto sales.

The pattern in consumer spending is often the foremost influence on stock and bond markets. For stocks, strong economic growth translates to healthy corporate profits and higher stock prices. For bonds, the focus is whether economic growth goes overboard and leads to inflation. Ideally, the economy walks that fine line between strong growth and excessive (inflationary) growth.

Retail sales not only give you a sense of the big picture, but also the trends among different types of retailers. Perhaps apparel sales are showing exceptional weakness but electronics sales are soaring. These trends from the retail sales data can help you spot specific investment opportunities, without having to wait for a company's quarterly or annual report.