February sales fall flat as BRC warns of further issues from Middle East conflict

Total UK retail sales increased 1.1% year on year in February compared to the same percentage rise in February 2025, according to the BRC-KPMG sales monitor. This was below the average growth of 2.3%.

Food sales saw a rise of 2.9% year on year compared to a growth of 2.3% in the same month last year, although this was below the annual average growth of 3.8%.

Non-food sales slipped 0.4% year on year in February against 0% growth in February 2025. It was below the 12-month average of 1%.

In-store non-food sales rose 0.2% against a decline of 1% in February 2025. Online non-food sales fell 1.3% against a growth of 1.9% in the same month last year.

BRC chief executive Helen Dickinson said: “February’s grey, wet weather hit retail sales hard. Spending was weak across most categories, online and in-store, as households pulled back after Christmas and January’s rebound. 

“Food sales were flat in real terms as shoppers tightened their belts. Valentine’s Day did provide a bright spot, with jewellery, watches and perfume performing better as people still treated loved ones.

“While retailers look to spring and better weather to lift spirits and revive sales, conflict in the Middle East threatens to knock any recovery off course. Prolonged low consumer confidence adds strain on retailers already facing mounting cost pressures, higher taxes and a growing regulatory burden. 

“At such a time, the government’s top priority should be to avoid piling on further cost and complexity and to think carefully about the real-world impacts of aspects of the Employment Rights Act. Without realism and restraint, retailers will struggle to invest in the jobs the economy needs, and prices households can afford.”

KPMG UK head of consumer, retail and leisure Linda Ellett added: “Health and wellbeing-related purchases helped to drive modest monthly retail sales growth in February. But minus food and drink sales, the momentum wasn’t strong enough to keep growth going for total non-food goods.

“While some channels, categories, and brands are showing there is still room to thrive, the combination of ongoing business costs and limited consumer spending is challenging others – with efficiency drives and technological transformation continuing at pace.”