27 March 2026

Bira has warned that falling retail sales in February are an early sign of consumers reining in their spending amid growing economic uncertainty.

The quantity of goods bought fell by 0.4 per cent in February 2026, down from a revised rise of 2.0 per cent in January, according to the Office for National Statistics (ONS). Supermarket sales fell back as shoppers concentrated their spending in January to capitalise on start-of-year deals, while household goods stores also dipped, with retailers pointing to heavy rainfall reducing footfall during the month.

 
UK Town Street Cold
 

Online sales continued to outperform, rising 11.4 per cent year on year in February, with the proportion of total sales made online edging up from 28.0 per cent in January to 28.2 per cent.

 
Andrew Goodacre, CEO of Bira
Andrew Goodacre, CEO of Bira, said: "These figures are the first sign of consumers beginning to pull back on spending in the face of growing economic uncertainty. The conflict in the Middle East has already driven consumer confidence to an all-time low, and we expect the picture for non-food retail to worsen further in the months ahead.
"This could not come at a worse time for independent retailers, who are already contending with significant increases in their rates bills, rising wage costs, and the very real prospect of higher energy costs. The lack of meaningful government support is hard to understand. The so-called transformation of business rates has made matters worse, not better, and independent retailers are running out of road."
 

The figures come as retailers brace for further cost pressures from rising energy and manufacturing costs. Retail giant Next has already reported a £15 million hit from the Middle East conflict and has warned that price increases for consumers could follow as early as June.

Bira is calling on the government to provide meaningful support to independent retailers before the cumulative pressures of rising rates, wages, and energy costs cause irreversible damage to the high street.

 

With the deadline less than a week away, here's how to challenge and appeal your shop's business rate valuation

Independent retailers can easily check their shop’s business rates valuation through the Government's portal and ensure the details are correct.

With a simple online account, you can review, plan ahead, and even challenge your valuation before the deadline.

 

Bira's advocacy takes your voice to the heart of Parliament

Bira is at the forefront of championing the cause of independent traders and shopkeepers across Britain.

Our campaigns cover a wide spectrum of issues crucial to the success of independent traders including:

  • Combatting the rising tide of retail crime
  • Advocating for changes in legislation that promote fairness and flexibility
  • Fighting for fairer business rates
  • Overall reducing the regulatory burden
 

Image credit: Leonid Andronov/stock.adobe.com

 

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