Carry On Shopping! High Street and online spending in February defied gloomy predictions
The latest government Office for National Statistics (ONS) retail sales bulletin shows sales volumes – the amount we all bought – rose by 1% in February over January, despite predictions from analysts and consumers themselves that sales were likely to fall.
Brits pluckily carried on shopping last month in spite of a wobble in consumer confidence, says the home delivery expert Parcelhero.
Parcelhero’s head of consumer research, David Jinks says: ‘Brits kept calm and carried on shopping in February, despite the economic gloom. A recent quarterly survey by KPMG revealed consumer confidence to be low, with 3 in 5 shoppers saying they were planning to cut spending. 43% of Brits said they would reduce spending on everyday items and 29% on big ticket purchases. Instead, High Street and online sales volumes actually rose last month and our overall spending rose by 0.7% (that’s the amount spent both online and in store combined).
‘On the High Street, household goods stores benefitted most, particularly hardware stores, with the amount of goods bought up 6.8% against January as Brits launched into some early spring cleaning and DIY.
‘The ONS also reveals that watches and jewellery stores’ sales grew strongly over the month, as shoppers defied their own big ticket predictions. High Street clothing stores also rose 2.3% in February.
‘Nor did online miss out on the retail spending uptick. The amount of products we all bought online and the amount we spent online both rose by 3.3% over January. That neat symmetry shows that inflation was heading in the right direction last month. The results also showed a very healthy year-on-year increase in online spending of 3.9% against February 2024, again showing shoppers may actually be more confident than they were this time last year.
‘As a result, the proportion of sales made online rose from 25.8% of all retail spending in January to 26.5% in February.
‘These retail sales results all look positive, but the crunch figures will actually be those for March and April, as increases to employers’ National Insurance contributions and the minimum wage kick in next month. Will retailers be able to maintain the keen pricing that encouraged Brits to Carry On Shopping in February?
‘February’s figures could prove to be a bubble and the calm before the storm. However, it could be that, despite ourselves, we are ready to splash the cash a little more than we thought. Interestingly, that may be borne out by the bigger picture uncovered in that recent KPMG survey. It revealed that, despite the perception of a downbeat economic picture, the majority (55%) of shoppers conceded that they currently feel financially secure (that’s just 2% lower than the previous quarter).
‘Ultimately, it’s those stores with a combined High Street and online offering that are most protected against unexpected events. Parcelhero’s influential report “2030: Death of the High Street” has been discussed in Parliament. It reveals that retailers must develop an omnichannel approach, embracing both online and physical store sales. Read the full report at: https://www.parcelhero.com/content/downloads/pdfs/high-street/deathofthehighstreetreport.pdf