LONDON, Feb 24 (Reuters) – British retail sales fell sharply in February, which stores partly blamed on unusually persistent wet weather that encouraged shoppers to spend online instead, the Confederation of British Industry said on Tuesday.
The CBI’s monthly distributive trades survey showed the main sales volume balance sink to -43 in February from -17 in January, only just above December’s six-month low of -44.
“Retail sales volumes fell at a sharp pace in the year to February, with some firms reporting that the wet weather discouraged shoppers from visiting stores,” CBI economist Martin Sartorius said.
Online sales grew at the fastest pace since April 2021, but not enough to boost the overall index.
Prospects for March are somewhat brighter, with expected sales volumes standing at -17, the least negative in six months.
The CBI’s quarterly retail business optimism gauge edged up only marginally to -34 this month from November’s -35 reading, which was the lowest since 2008 and reflected concerns ahead of finance minister Rachel Reeves’ November budget.
Next week Reeves will set out new growth forecasts and borrowing plans, although she has said she does not intend to announce significant changes in government policy.
“Firms will be looking for the Chancellor to set out how the government plans to mitigate the impact of rising employment costs in the distribution sector, particularly given its vital role in providing first jobs for young people,” Sartorius said.
(Reporting by David Milliken, editing by Andy Bruce)
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