UK retail sales increased 1.0% MoM in February, beating expectations of a -0.3% MoM drop and a continuation of the strong January increase of 1.4% MoM.

• Excluding fuel sales, retail sales were up 1.0% MoM, above expectations of a -0.5% MoM drop.
• Retail sales were up 2.2% YoY (vs 0.5% YoY expected), and retail sales (ex-fuel) were up 2.2% YoY (vs 0.4% YoY expected).
• Sales volumes rose by 0.3% in the three months to February 2025, compared with the three months to November 2024.
• Food sales were down -2.0% MoM but were offset by a surge of 3.1% MoM in non-food sales. This put monthly sales volumes at their highest level since March 2022.
• Supermarkets had the largest downward contribution to food sales, with retailers commenting on economic factors such as increasing prices.
• Household goods stores rose by 6.8%, their largest monthly rise since April 2021, with hardware stores having the largest upward contribution.
• The amount spent online, known as “online spending values”, rose by 3.3% MoM and 3.9% YoY.