PwC comments on February 2026 ONS retail sales figures

Commenting on the Office of National Statistics retail sales index for February 2026, Kien Tan, Senior Retail Advisor at PwC UK, said: 

“Retail sales in February 2026 saw a sharp slowdown compared with the post-Christmas rally we saw in January. Overall sales volumes excluding petrol rose by 3.4% compared with last February, which translates into 4.7% more pounds in retailers’ tills once inflation is taken into account. 

“While the last three months as a whole was an improvement compared with the quarter in the run-up to the Budget at the end of November, February’s number represents a 0.4% volume decline compared with January.

“The seemingly never-ending rain for the first three weeks of the month dissuaded shoppers from both high streets – with footfall declining at its fastest rate for almost a year, according to the BRC – and seasonal purchases of home and garden products in particular.

“Not surprisingly given the wet weather, the proportion of retail sales online rose from 28.0% in January to 28.2% in February, almost 2 percentage points higher than the same time last year.

“Despite Valentine’s Day, the beginning of Lent, Ramadan and the Lunar New Year all coinciding in the middle of the month, grocery sales were disappointing in February, with volumes down 0.7% on January, and year-on-year sales growth only held up by inflation.

“February’s weakening retail performance was set against a backdrop of unchanged inflation and pre-dates the start of the Middle East conflict. There are already indications that the conflict is affecting consumer confidence, while retailers have also warned that a prolonged conflict is likely to lead to faster price rises.

“With the cost-of-living already shoppers’ single biggest concern and causing almost three-quarters to rethink their spending according to our research, any further increases in the prices of day-to-day goods will not be welcomed by consumers and retailers alike. So, while we remain optimistic that there could be a recovery in retail in the second half of 2026, the sector will be waiting with bated breath for a swift resolution to the current global instability.”

-Ends-

Notes to Editors:  
Based on the 7am edition of ONS data released on 27th March here: https://www.ons.gov.uk/businessindustryandtrade/retailindustry/bulletins/retailsales/february2026