Retailers are suffering from the longest dip in sales since the 2020 pandemic as consumers cut back for the fifth consecutive month.
Like-for-like sales across fashion, homewares and lifestyle slipped 1.3% in February, according to new figures from accountancy firm BDO.
Fashion was hit the hardest, with overall sales down 4.8% and instore sales plunging 8.2% last month.
Homewares was also down 4.2%, while the lifestyle sector reported a 3.9% increase.
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BDO reported that while a 2.9% increase in online sales helped to partially offset a 2% drop in store sales, overall performance was still in negative territory.
The firm’s head of retail and wholesale Sophie Michael said: “Since we started tracking both online and in-store sales in 2017, the only time we’ve seen results this poor was during the 2020 COVID-19 lockdown period, when the majority of non-essential retailers were forced to remain closed.
“Retailers are facing a perfect storm with a sustained decline in consumer spending in discretionary categories and substantial increases in their operating and borrowing costs.
“Retailers will increasingly be challenging themselves and asking whether certain stores are viable, or if the costs of running their existing physical footprint is simply too high.
“We should expect to see more consolidation of brands and acquisitions over the next six months as a result,” Michael added.
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