Retail sales slump in February, e-tailers fare better

Retail in the UK took a battering in February, dropping by a higher than expected 0.8 percent in sales volume from January.

In the wake of a lacklustre Christmas on the high street, shops have continued to struggle according to data released by the Office of National Statistics in the UK.  The ONS also downwardly revised January figures.

Retail sales value also decreased, down by 0.4 percent, putting a dampener on any hopes for a quick return to economic growth.

The lack of spending has been cutting into revenues of high street retailers serving the channel.  AJ Electronics and the prominent high street store GAME announced yesterday that they have bitten the dust due to the economic climate, with the rise of large e-tailers cited as a cause.

Unsurprisingly, internet sales fared rather well and are now accounting for 10.7 of sales in the UK, according to the ONS.  Across a wide spectrum this meant an average weekly sales value of internet retail sales at £573.6 million .

Although yesterday’s budget promised to put more money in the pockets of consumers with lower incomes, it seems that retail sales are still in need of a quick boost to provide security to those occupying the high street.

 

Matthew Finnegan

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