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UK Retail Sales Slip in February as Retailers Warn of Iran Cost Shock

Cost pressures from the Iran war threaten higher retail prices this spring.

Overview

  • Official data show retail sales volumes fell 0.4% in February after a revised 2.0% jump in January.
  • Over the three months to February, total sales edged up 0.7% as online shops and art dealers grew while clothing stores lagged, according to the ONS.
  • Supermarket spending dropped as many shoppers pulled purchases forward to grab January discounts.
  • Retailers warned that energy and manufacturing costs linked to the Iran conflict are rising, with Next reporting a £15m hit and flagging possible price increases as soon as June.
  • Some business leaders urged the government to provide energy support to help keep retailers from passing higher costs on to shoppers.