MNI DATA ANALYSIS: UK Feb Retail Sales Up, Boosted By Internet>

-UK Feb Total Sales +0.8% m/m, +1.5% y/y

-UK Feb Non-Fuel Sales +0.6% m/m, +1.1% y/y

-UK Feb Retail Prices +2.5% y/y vs +2.8% in Jan

     By Laurie Laird and Jamie Satchithanantham 

     LONDON (MNI) - Retail sales volumes rose smartly in February, 

boosted by supermarket sales, with online transactions accounting for a 

record portion of total sales when measured by value. 

     Sales volumes rose by 0.8% between January and February, exceeding 

the median MNI median forecast of a 0.5% increase. On an annual basis, 

retail sales increased by 1.5%, compared to the MNI median gain of 1.4%. 

     Food store sales accounted for much of the retail strength, rising 

by 1.1% in February, powered by supermarket transactions. Sales at 

specialist outlets, such as butchers and wine merchants, actually 

declined in the month, according to a National Statistics official. 

     Non-store retailing volumes increased by 4.6%, or by 12.0% over the 

same month of 2017, lifted by on-line activity. 

     Internet sales jumped by 3.1% in value terms between February and 

March, the biggest rise since January of 2016, accounting for a 

record-high 17.2% of all sales in value terms. 

     January sales were revised to show a 0.2% decline, down from the 

originally reported 0.1% gain. That means sales must rise by 0.6% in 

March to match the level of sales in the fourth quarter. 

     The retail sector expanded by 0.5% in the fourth quarter, adding 

0.03 percentage points to total growth of 0.4%. 

     Over the three months to February, retail sales declined by 0.4%, 

the slowest growth on this measure since last March.                                                                       

     The implied price deflator rose by 2.5% in the year to February, 

the sixteenth straight increase, but the smallest rise since January of 

2017.  

     Excluding fuel, sales rose by 0.6% last month, or by 1.1% compared 

with February of 2017, below the MNI median forecast of a 0.7% monthly 

gain and a 1.5% annual rise. 

     January non-fuel sales were also weaker than originally reported, 

falling by a revised 0.2% from December and rising by 1.3% over January 

of 2017. Excluding fuel, sales growth was originally reported as up 0.1% 

between December and January and up 1.5% over the first month of 2017. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com 

[TOPICS: M$B$$$,MABDS$]