Retail sales in the UK experienced a modest increase in February 2025, largely attributed to the performance of the food sector, according to data from British Retail Consortium (BRC) and KPMG.

Between 2 February to 1 March, total retail sales in the UK saw a year-on-year increment of 1.1%.

This mirrors the growth rate seen in the same month of the previous year and exceeds the annual average growth rate of 0.8%, although it does not reach the three-month average growth rate of 2.4%.

Food sector was the driving force, registering a 2.3% year-on-year increase in sales, aligning with the three-month average but falling short of the previous year’s growth in February of 5.6% and the annual average increase of 2.8%.

Sales in non-food categories showed no change compared to 2024, which contrasts with 2024’s 2.7% decline on 2023.

This performance did not meet the three-month average growth of 2.5%, but did surpass the annual average decline of 0.9%.

Sales at bricks-and-mortar stores within the non-food sector declined 1% on a yearly basis during the month, showing some recovery from the previous year’s figures but trailing both three-month and 12-month averages.

Online sales in the non-food category provided a silver lining, registering a rise of 1.9% in the same month of the previous year and rebounding from a decline of 4.1% seen in 2024.

Although this improvement was below the three-month average increase of 5.3%, it was higher than the annual average growth rate of 0.6%.

The proportion of non-food purchases made online slightly increased to 36.4%, up from 35.8% in February of the previous year, yet remained below the annual average penetration rate of 36.7%.

British Retail Consortium chief executive Helen Dickinson stated: “Retail sales saw more modest growth in February. While sales growth across non-food categories was generally muted, it was propped up by online purchases, particularly in computing and electronics.

“This weak performance makes many retailers uneasy, especially as they brace for £7bn of new costs from the [Autumn 2024] Budget and packaging levy in 2025, as well as the potential impact of the Employment Rights Bill.

“The industry is already doing all it can to absorb existing costs, but they will be left with little choice but to increase prices or reduce investment in jobs and shops, or both. The focus of the Employment Rights Bill should be on unscrupulous employers but instead the industry faces ongoing uncertainty and a trajectory that risks punishing responsible businesses who provide valuable employment, particularly at entry level. It is time for government to course correct to ensure investment and growth are not undermined.”

Recent data from the BRC-Sensormatic has revealed that overall UK retail footfall witnessed a marginal rise of 0.2% in February 2025 compared to the same month of 2024.