Worst February in a decade for retailers, says BDO

High street retailers suffered the worst February in a decade for in-store sales, according to figures from BDO’s latest High Street Sales Tracker (HSST).

According to the accountancy and business advisory firm, in-store like-for-like sales dropped -3.7% this month from a “poor base of” -1.6% for February last year.

Additionally, Valentine’s Day, half-term holidays and the spell of warm weather at the end of the month “failed to improve the fortunes of bricks-and-mortar retailers”, resulting in the worst February figures for in-store sales since 2009.

The firm said lifestyle retailers “suffered the worst monthly result for in-store sales since November 2008”, with Valentine’s Day failing to provide any of the expected uplift to the category.

In-store category sales were also down by -4.9%, making it the 13th consecutive month of negative in-store like-for-like sales and the worst February for lifestyle on record.

Sophie Michael, head of retail and wholesale at BDO, said: “Consumer confidence is teetering on the precipice and shoppers are resisting unnecessary spend. Lifestyle, a category that would normally see a lift thanks to Valentine’s Day, suffered the worst monthly result since 2008. It’s clear that shoppers are exercising extreme caution.

“It has been a tough start to the year for the sector and retailers are continuing to fill headlines with poor performances. Brexit uncertainty is proving to have a disproportionate impact on discretionary spending and there’s an increasing sense of nervousness among retailers.”

She added: “As the March quarter rent date draws near, and hard on the heels of the poor Christmas trading already reported, it will not be a surprise if we hear of more retail names announcing further structural changes as the sector realigns to this new retail world.”