Retail sales take an unexpected turn for the better with strong increase

Sales unexpectedly rose by 2.7 per cent on a like-for-like basis in February, boosting retailers’ confidence at a time when many high street stores are going out of business.

Excluding distortions caused by the timing of Easter in previous years, the BRC said total sales grew at the fastest rate since February 2010.

Helen Dickinson, director general of the British Retail Consortium, said: “After the disappointing figures that brought 2012 to a close, it’s reassuring that the sales momentum established during an encouraging January has built not faded.”

The BRC said all parts of retailing showed growth in February, with big-ticket goods and items for the home recovering particularly well, possibly reflecting better conditions in the housing market.

David McCorquodale, head of retail at KPMG, said: “Whilst one shouldn’t read too much into one month’s figures, February’s data will provide a much-needed fillip to retailers’ confidence levels. Against all expectations, retail sales rose this month to achieve the strongest underlying sales growth for three years.”

Growth was achieved despite a sluggish set of numbers from the food and drink sector, where the recent horse meat scandal has persuaded many consumers to eschew meat.