Rise in clothes sales bucks shop spending fears
Customers turned back to shopping for clothes last month despite fears over the looming cost of living crisis.
Figures from the Office for National Statistics (ONS) show that clothing sales jumped more than 13% during the month following the easing of Omicron restrictions – bucking the overall trend across British retailers. Overall, retail sector sales dropped by 0.3% in February – following January’s 1.9% rise. Heather Bovill, ONS deputy director for surveys and economic indicators, said: “After a buoyant January, retail sales fell back a little last month, with a notable decline for companies that predominantly trade online. More socialising and people returning to the workplace meant a good month for clothing and department stores.”
The figures show food shops saw a 0.2% reduction in sales. Aled Patchett, head of retail and consumer goods at Lloyds Bank, warned that Russia's invasion of Ukraine and the cost-of-living crisis could pile pressure on the sector.
He said: "The coming months are likely to prove disruptive for retailers, with the impact of the costof-living crisis expected to become particularly acute quite quickly. Rising energy prices could both push up the day-to-day costs of running a business and hamper consumer spending power, limiting the disposable income people have in their pockets and how much they spend on discretionary items. Add higher food prices resulting from the conflict in Ukraine, tax increases, the upcoming rise in the minimum wage and continued supply chain disruption to the mix, and it could prove to be a challenging period ahead."