Valentine’s Day proves a present for UK retailers, as customers maintain again on big-ticket gadgets | Retail trade

A rise in Valentine’s Day gift-buying introduced reduction for retailers final month amid February’s “gray days”, as customers held again from spending on big-ticket gadgets, in accordance with trade figures.

Jewelry purchases linked to Valentine’s Day have been one of many highlights of an in any other case lacklustre month when gross sales inched forward, the British Retail Consortium (BRC) stated.

The enduring demand for well being and sweetness merchandise and expertise, together with tablets, computer systems and cell phones, offset falls in clothes and footwear, the trade physique stated.

Whole UK retail gross sales elevated by 1.1% 12 months on 12 months in February, above the 12-month common development of 0.8%, the BRC-KPMG retail gross sales monitor discovered.

Linda Ellett, the UK head of shopper, retail and leisure at KPMG, stated: “Nervousness in regards to the financial system is deferring big-ticket buying, however events and provides are nonetheless tempting customers into some impulsive spending.

“Valentine’s, for instance, introduced a jewelry gross sales increase to the excessive avenue in what was in any other case a flat month for in-store shopping for.”

Retailers have been heading in the right direction for additional enhancements in gross sales volumes via the spring after shopper confidence figures confirmed a extra buoyant outlook in February after what the pollsters YouGov described as a “shaky begin” to the 12 months in January.

In line with the YouGov/Cebr shopper confidence index, households have been upbeat, pushing the index from 111.1 to 112.5, the place a determine above 100 signifies optimistic sentiment.

The index has climbed steadily over the previous 18 months according to a fall in inflation and an increase in disposable incomes.

YouGov stated the UK was in “a greater temper than it was in January” and staff reported “enhancements in enterprise exercise”.

Meals gross sales have been up 2.3% on a 12 months in the past, however this represented a drop from development of 5.6% in February final 12 months and under the 12-month common development of two.8%, the BRC stated. Non-food gross sales recovered from a 2.7% decline a 12 months in the past to register flat gross sales.

Helen Dickinson, the chief government of the BRC, stated: “Retail gross sales noticed extra modest development in February. Whereas gross sales development throughout non-food classes was typically muted, it was propped up by on-line purchases, significantly in computing and electronics.”

Dickinson stated watches and fragrances additionally bought properly due to Valentine’s Day, reversing declines final 12 months.

She blamed the chilly climate final month for a poor exhibiting by the style trade, however retailers have been hopeful the early March sunshine would “kickstart spending on spring and summer time wardrobes”.

Separate figures from Barclays confirmed that card spending grew 1% 12 months on 12 months in February – decrease than January’s 1.9% enhance – as customers reduce in anticipation of upper council tax and utility payments.

Nonetheless, confidence in family funds reached 75%, the very best stage Barclays has recorded because it began monitoring the measure in 2015 and up from 70% in January.

ManpowerGroup, the employment company, stated a number of industrial sectors have been starting to rent new employees after months of placing job provides on maintain. It stated the transport and logistics, defence and public sectors have been “bucking the hiring pattern whereas different sectors maintain again”.

A survey of employers discovered that 42% anticipated to take care of the identical variety of staff within the second quarter of this 12 months, whereas deliberate hiring was down by 27% from the earlier quarter.

Michael Stull, the group’s managing director, stated a hiring recession would stay till the summer time, however apush from property and industrial firms to rent extra employees meant there was an optimistic outlook.