February retail sales hit by poor weather and Coronavirus concerns

Total in-store retail sales declined by 0.9% in February, according to BDO’s monthly High Street Sales Tracker.

The accountancy firm said a mix of poor weather and “growing concerns” around the spread of coronavirus caused retailers to take a hit during the month. Despite this, online sales saw a slight increase of 6% during the period.

Overall footfall failed to record an increase throughout February as the month was hit by storms Ciara, Dennis and Jorge in successive weeks.

While the first week saw footfall remain flat, BDO said the remaining three weeks suffered “dramatic declines”. Retail parks were the only category to see negative footfall in each week of the month, however the high street posted the most severe decline with footfall plummeting by -12.9% in week three as poor weather took hold.

BDO said: “On the economic front there have been positive notes with a six-month high for inflation providing grounds for cautious optimism and wages continuing to rise. However these indicators did not coincide with sustained spending in February.”

They added: “With a new chancellor in place for the upcoming Budget, there will be hope for additional spending and a novel approach to the struggling high street.

“But moving forward there will be the added concern of coronavirus and its impact on retail supply chains as many retailers have already been hit by the cost of shifting operations. The unfolding threat has introduced an element of volatility whose impact on consumer behaviour will be difficult to anticipate.”