Britain’s retail sales slumped in February despite coronavirus restrictions easing, as the cost-of-living crisis started to hit households hard.
The volume of goods sold in stores and online fell 0.3 per cent in February, compared with the same month a year earlier, according to the Office for National Statistics (ONS), after rising 1.9 per cent in January when shoppers made up for lost time following Christmas Covid-19 restrictions.
While some Britons changed their spending patterns as restrictions eased – socialising more and returning to the office – others tightened their belts as the cost-of-living squeeze took hold amid rising energy and fuel bills.
“After a buoyant January, retail sales fell back a little last month,” said ONS deputy director for surveys and economic indicators, Heather Bovill.
“Household goods and many other stores reported a decrease with feedback suggesting February’s stormy weather could have had an impact, while increased travel following the lifting of England’s Plan B restrictions at the end of January drove fuel sales above their pre-pandemic level for the first time.”
Spending also dropped at food stores as more Britons headed to restaurants, while clothing sales picked up as more peopled returned to the office, and the proportion of sales carried out online fell to the lowest since March 2020.
February's retreating retail sales show the pain of higher prices is already hurting, said Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown.
On Thursday, high street retailer Next said staff shortages, as well as disruption from the war in Ukraine, would fuel an 8 per cent rise in its prices this autumn.
“With the cost of living squeeze intensifying, shoppers have kept a firmer grip on their purses," Ms Streeter said.
“The easing of restrictions did provide some bounce for fashion retailers, as new outfits were purchased for long awaited nights out, but it brought a drop in sales for food retailers, as consumers swapped gourmet meals in for restaurant meals out. With the only way up for prices, with retailers lining up to prepare customers for hikes, it’s likely this drop in sales is the first sign of fresh falls to come.”
Sales excluding fuel fell 0.7 per cent in the month, the ONS said, and more declines in spending may be coming as consumers face a cost-of-living crisis.
That’s mainly driven by looming rises in energy bills that are likely to worsen due to the war in Ukraine, with the government’s fiscal watchdog saying this week Britons face the biggest squeeze on living standards in at least six decades.
A separate survey by GfK showed consumer confidence plummeted for a fourth-straight month in March to its lowest level since November 2020, when the country was under heavy restrictions. Consumers’ outlook for their personal finances fell to the lowest since the financial crisis in 2008.
While Chancellor of the Exchequer Rishi Sunak’s Spring Statement sought to alleviate some of that pain, he has faced criticism for not going far enough to help the most vulnerable.
Mr Sunak was labelled a "fiscal illusionist" by the Institute for Fiscal Studies (IFS) on Thursday for claiming to have cut taxes when he is actually "presiding over a very big increase".
This is largely because of Mr Sunak’s decision to freeze tax thresholds rather than increase them with inflation, meaning more are pushed into higher bands.
Meanwhile, the think tank Resolution Foundation said this means only a tiny proportion will save money from Mr Sunak’s pledge to cut the basic rate by 1 pence before the next general election.
With inflation hitting 6.2 per cent in February, with expectations it will hit double digits this year, almost everybody (92 per cent) has noticed the weekly shop is getting more expensive and while cutbacks are first being made on those nice-to-haves, almost a third of consumers are already cutting back on the things they need, said Danni Hewson, AJ Bell financial analyst.
“Until now, retail sales have proved remarkably resilient, still 3.7 per cent up on where they were back in February 2020," she said.
"But people can’t spend what they don’t have, and that slow creeping erosion of living standards is about to get hit by an energy tsunami.
"Retailers will have to make their own calculations about whether they can absorb the price pressures also assaulting them or to pass them on and hope that won’t totally squash sales volumes.”
Usain Bolt's time for the 100m at major championships
2008 Beijing Olympics 9.69 seconds
2009 Berlin World Championships 9.58
2011 Daegu World Championships Disqualified
2012 London Olympics 9.63
2013 Moscow World Championships 9.77
2015 Beijing World Championships 9.79
2016 Rio Olympics 9.81
2017 London World Championships 9.95
England v West Indies
England squad for the first Test Cook, Stoneman, Westley, Root (captain), Malan, Stokes, Bairstow, Moeen, Roland-Jones, Broad, Anderson, Woakes, Crane
Fixtures
1st Test Aug 17-21, Edgbaston
2nd Test Aug 25-29, Headingley
3rd Test Sep 7-11, Lord's
Top 10 in the F1 drivers' standings
1. Sebastian Vettel, Ferrari 202 points
2. Lewis Hamilton, Mercedes-GP 188
3. Valtteri Bottas, Mercedes-GP 169
4. Daniel Ricciardo, Red Bull Racing 117
5. Kimi Raikkonen, Ferrari 116
6. Max Verstappen, Red Bull Racing 67
7. Sergio Perez, Force India 56
8. Esteban Ocon, Force India 45
9. Carlos Sainz Jr, Toro Rosso 35
10. Nico Hulkenberg, Renault 26
The UAE squad for the Asian Indoor and Martial Arts Games
The jiu-jitsu men’s team: Faisal Al Ketbi, Zayed Al Kaabi, Yahia Al Hammadi, Taleb Al Kirbi, Obaid Al Nuaimi, Omar Al Fadhli, Zayed Al Mansoori, Saeed Al Mazroui, Ibrahim Al Hosani, Mohammed Al Qubaisi, Salem Al Suwaidi, Khalfan Belhol, Saood Al Hammadi.
Women’s team: Mouza Al Shamsi, Wadeema Al Yafei, Reem Al Hashmi, Mahra Al Hanaei, Bashayer Al Matrooshi, Hessa Thani, Salwa Al Ali.
Drivers’ championship standings after Singapore:
1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The specs
Engine: 3.0-litre twin-turbo flat-six
Power: 480hp at 6,500rpm
Torque: 570Nm from 2,300-5,000rpm
Transmission: 8-speed dual-clutch auto
Fuel consumption: 10.4L/100km
Price: from Dh547,600
On sale: now
RESULTS
5pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (Turf) 2,200m
Winner: M'A Yaromoon, Jesus Rosales (jockey), Khalifa Al Neydai (trainer)
5.30pm: Khor Al Baghal – Conditions (PA) Dh80,000 (T) 1,600m
Winner: No Riesgo Al Maury, Antonio Fresu, Ibrahim Al Hadhrami
6pm: Khor Faridah – Handicap (PA) Dh80,000 (T) 1,600m
Winner: JAP Almahfuz, Royston Ffrench, Irfan Ellahi
6.30pm: Abu Dhabi Fillies Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: Mahmouda, Pat Cosgrave, Abdallah Al Hammadi
7pm: Abu Dhabi Colts Classic – Prestige (PA) Dh110,000 (T) 1,400m
Winner: AS Jezan, George Buckell, Ahmed Al Mehairbi
7.30pm: Khor Laffam – Handicap (TB) Dh80,000 (T) 2,200m
Winner: Dolman, Antonio Fresu, Bhupath Seemar
'The Lost Daughter'
Director: Maggie Gyllenhaal
Starring: Olivia Colman, Jessie Buckley, Dakota Johnson
Rating: 4/5
PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised: $3m
Investors: Global Ventures and angel investors
RACECARD
6pm: Al Maktoum Challenge Round-1 – Group 1 (PA) $50,000 (Dirt) 1,600m
6.35pm: Festival City Stakes – Conditions (TB) $60,000 (D) 1,200m
7.10pm: Dubai Racing Club Classic – Listed (TB) $100,000 (Turf) 2,410m
7.45pm: Jumeirah Classic Trial – Conditions (TB) $150,000 (T) 1,400m
8.20pm: Al Maktoum Challenge Round-1 – Group 2 (TB) $250,000 (D) 1,600m
8.55pm: Cape Verdi – Group 2 (TB) $180,000 (T) 1,600m
9.30pm: Dubai Dash – Listed (TB) $100,000 (T) 1,000m
Results
6pm: Dubai Trophy – Conditions (TB) $100,000 (Turf) 1,200m
Winner: Silent Speech, William Buick (jockey), Charlie Appleby
(trainer)
6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m
Winner: Island Falcon, Frankie Dettori, Saeed bin Suroor
7.10pm: UAE 2000 Guineas Trial – Conditions (TB) $60,000 (Dirt)
1,400m
Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer
7.45pm: Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m
Winner: Desert Fire, Hector Crouch, Saeed bin Suroor
8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m
Winner: Naval Crown, William Buick, Charlie Appleby
8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m
Winner: Al Tariq, Pat Dobbs, Doug Watsons
9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m
Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor
Factfile on Garbine Muguruza:
Name: Garbine Muguruza (ESP)
World ranking: 15 (will rise to 5 on Monday)
Date of birth: October 8, 1993
Place of birth: Caracas, Venezuela
Place of residence: Geneva, Switzerland
Height: 6ft (1.82m)
Career singles titles: 4
Grand Slam titles: 2 (French Open 2016, Wimbledon 2017)
Career prize money: $13,928,719
Australia tour of Pakistan
March 4-8: First Test, Rawalpindi
March 12-16: Second Test, Karachi
March 21-25: Third Test, Lahore
March 29: First ODI, Rawalpindi
March 31: Second ODI, Rawalpindi
April 2: Third ODI, Rawalpindi
April 5: T20I, Rawalpindi
'The Sky is Everywhere'
Director:Josephine Decker
Stars:Grace Kaufman, Pico Alexander, Jacques Colimon
Rating:2/5
Dubai World Cup factbox
Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)
Most wins by a jockey: Jerry Bailey(4)
Most wins by an owner: Godolphin(9)
Most wins by a horse: Godolphin’s Thunder Snow(2)
England squad
Goalkeepers: Jordan Pickford, Nick Pope, Aaron Ramsdale
Defenders: Trent Alexander-Arnold, Conor Coady, Marc Guehi, Reece James, Harry Maguire, Tyrone Mings, Luke Shaw, John Stones, Ben White
Midfielders: Jude Bellingham, Conor Gallagher, Mason Mount, Jordan Henderson, Declan Rice, James Ward-Prowse
Forwards: Tammy Abraham, Phil Foden, Jack Grealish, Harry Kane, Bukayo Saka, Emile Smith Rowe, Raheem Sterling
