Second-hand and discount stores boost shop sales

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Shoppers facing cost-of-living pressures turned to discount and second-hand stores last month, giving retail sales a surprise boost.

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Load Error Sales volumes rose by 1.2% in February, official figures showed, the biggest monthly gain since October last year. Food sales also rose, but the Office for National Statistics said there were signs price pressures had cut spending in restaurants and on takeaway meals.

Figures out earlier this week showed prices rising faster than expected. February’s rise in sales was stronger than forecast, and followed an upwardly revised 0.9% increase in January. The ONS said the increase meant sales volumes were now back to pre-pandemic levels.

“However, the broader picture remains more subdued, with retail sales showing little real growth, particularly over the last 18 months with price rises hitting consumer spending power,” said ONS director of economic statistics Darren Morgan. The ONS said non-food sales rose by 2.4% last month, boosted by discount department and clothing stores. There was also “strong growth” in second-hand goods stores, such as auction houses and charity shops.

“Looking at the latest retail sales figures you might be forgiven for wondering if Britain really is in the middle of a cost-of-living crisis,” said Danni Hewson, head of financial analysis at AJ Bell. “But pop the hood and the reality is laid bare. Consumers appear to be choosing supermarkets over takeaways and snapping up bargains wherever they can,” she added.

“People are hunting out bargains whether they’re found in the sales aisles being well stocked by department stores, or in charity shops or other second-hand emporiums.”

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