Shoppers return to high street following big freeze but retailers refuse to get carried away

Published on Monday 8 March 2010 20:24

RETAIL sales bounced back last month as shoppers returned to the high street after a weather-hit January.

The British Retail Consortium today said that like-for-like sales increased by 2.2 per cent in February but cautioned growth was not as strong as the headline figure suggested.

Stephen Robertson, director general of the BRC, said: "Despite appearances, these results are not that strong. The growth is compared with very weak figures a year ago and this February's performance was helped by sales postponed from January – particularly sales of non-food items such as homewares and fashion."

Food sales growth slowed again last month, with many consumers having already stocked up on supplies during the snow in January.

Non-food sales recovered after taking a hit the month before, while clothing also did well as people got out to the shops again and sought warm clothing.

However, the growth in these sectors was often against very low comparatives from a year earlier.

"Consumer confidence is certainly up on this time last year but, with unemployment rising again, spending plans are falling," said Robertson.

"When the weather-related distortions are stripped away, it's clear customers are still cautious."

Many non-food sectors saw double digit growth in sales during the first week of February, following a snowbound January.

Valentine's Day helped sales of jewellery, fashion accessories and health and beauty. It was a difficult month for electrical and 'big ticket' items amid a general spending cutback after Christmas, while DIY and gardening sales were impacted by the cold.

Howard Archer, economist at IHS Global Insight, said a strong February for retail sales would lift hopes that the economic recovery continued into the first quarter.

But he added: "We continue to suspect that the upside for consumer spending – and hence overall economic growth – will be limited in 2010 as households still face very challenging conditions, notably including high unemployment that is likely to rise further, low earnings growth, high debt levels, and January's VAT hike."