Phil Monkhouse, UK Country Manager at global financial services firm Ebury, said: “February retail sales were a damp squib, with poor weather and cautious consumers reversing much of January’s rebound. Seasonal spending moments such as Valentine’s Day seemingly failed to generate any meaningful growth.
“Retailers will now be hoping that improving spring weather and Easter holidays will provide a lift, but the global backdrop is becoming more challenging.
“The UK is now on track for one of the highest inflation rates in the G7 this year, according to the latest OECD forecasts, threatening input costs for retailers as energy and transport costs rise.”
“Consumer confidence is also likely to remain subdued, as rising mortgage rates, higher borrowing costs and renewed inflation concerns linked to the Iran conflict all add up to a rocky outlook for consumer spending.
“Against this backdrop, retailers need to plan for continued volatility, maintaining strong access to financing, managing currency exposure carefully, and ensuring operational efficiency as the outlook remains uncertain.”
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