Retail Sales Decline for Fifth Straight Month in February

Retail Slumps Into a Dark Mayhem March

In February, total in‑store and online sales plunged by 1.3%, marking the fifth straight month of negative results according to BDO’s High Street Sales Tracker. Long‑time shoppers already feel the chill, and retailers are bracing for a lean year ahead.

Why the Fallout? A One‑Size‑Fits‑All Grab‑Bite

Annual online sales grew +2.9%—a silver lining, no doubt.
In‑store sales took the brunt with -2.0%, pulling the sector into the red.
Fashion and homewares horror stories: like‑for‑like drops of -4.8% and -4.1%, respectively.
Fashion stores themselves slumped -8.2%—an eye‑watering trend.
Luckily, the lifestyle sector stirred up a decent +3.9% of February 2023 sales.

Talking Shop With Sophie Michael, BDO’s Retail Guru

“We’ve seen this yuck only during the 2020 lockdown,” Sophie mused, pointing at the data lit up on her screen. “It’s like watching a coin flip; the two sides are “Christmas explosion” and “New‑Year clearance”—and both looked a bit too quiet this time.”

She added, “Retail is now in a perfect storm of falling consumer spend, rising operating costs, and borrowing costs. If the shop floor can’t keep up, it might just get a ‘This store is not viable’ stamp of doom.”

Money Worries: The Top Two Threats, According to BDO’s Survey

More than 69% of mid‑market retailers see high operating costs and borrowing expenses as the most pressing challenge over the next six months—more critical than supply‑chain headaches or talent gaps.

What’s Next for the Retail Landscape?

Expect larger “merger & acquisition” bingo sessions as under‑performing stores either disappear or get taken over.
Retailers will go through their own “store viability audit” to decide which shops are worth keeping.
Chancellor’s Budget? The sector is clutching for targeted support, having pulled in a whopping £110 bn and feeding nearly 3 million jobs.
Governments are urged to act before the high‑street vacancy rate panics out.