Retailers experienced a relief in February as Valentine’s Day gift-buying boosted sales, according to industry figures. Despite overall cautious spending on big-ticket items, jewelry purchases related to Valentine’s Day were a highlight of an otherwise subdued month, as reported by the British Retail Consortium (BRC). The ongoing demand for health and beauty products, as well as technology items such as tablets, computers, and mobile phones, counteracted declines in clothing and footwear sales. Total UK retail sales rose by 1.1% compared to the previous year, surpassing the 12-month average growth of 0.8%, as per the BRC-KPMG retail sales monitor. Linda Ellett, the UK head of consumer, retail, and leisure at KPMG, noted that even though consumers are hesitant to make significant purchases due to economic uncertainties, special occasions like Valentine’s Day still entice shoppers to some impulsive spending. She also mentioned that retailers can expect further improvements in sales volumes throughout the spring season. The YouGov/Cebr Consumer Confidence Index indicated a rise from 111.1 to 112.5 in February, with a score above 100 signifying positive sentiment. The increase in the index reflects a decrease in inflation and an increase in disposable incomes over the past 18 months. Food sales experienced a 2.3% growth compared to the previous year but were lower than the 5.6% growth in February of the previous year and below the 12-month average growth of 2.8%. Non-food sales remained stable in comparison to a 2.7% decline in the same month last year. Helen Dickinson, the chief executive of the BRC, highlighted that online purchases, particularly in the computing and electronics sectors, helped prop up the muted sales growth across non-food categories. Fragrances and watches also saw an increase in sales due to Valentine’s Day, reversing the decline in the previous year. Meanwhile, cold weather impacted the fashion industry’s performance, but retailers were hopeful that the early March sunshine would boost spending on spring and summer wardrobes. Barclays reported that card spending grew by 1% year-on-year in February, lower than January’s 1.9%, as consumers prepared for higher council tax and utility bills. However, confidence in household finances reached 75%, the highest level recorded by Barclays since 2015 and up from 70% in January. ManpowerGroup, an employment agency, stated that several industrial sectors, including transportation, logistics, defense, and the public sector, were hiring new staff after putting job offers on hold for months. A survey of employers found that 42% expected to maintain the same number of workers in the second quarter of the year, while planned hiring decreased by 27% compared to the previous quarter. Michael Stull, the managing director of ManpowerGroup, mentioned that a hiring recession would continue until the summer, but there is an optimistic outlook due to the push from property and industrial companies to hire more staff.

Source: https://www.theguardian.com/business/2025/mar/11/valentines-day-proves-a-gift-for-uk-retailers-as-consumers-hold-back-on-big-ticket-items