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British retail sales partly recover in February boosting optimism for fast return to pre-pandemic levels after lockdowns end

UK retail sales rose by 2.1% in February, in line with expectations, following a drop of 8.2% in January when parts of the country went back into lockdown and the rest was under tight restrictions.

The recovery was helped by increased sales at department stores that were allowed to stay open, household goods and outdoor products as consumers prepared for an easing of lockdown restrictions.

Solid results in February boost hopes that retail sector is on recovery track as retail sales were down 3.7% compared with February 2020 that many economists see as good improvement from the situation seen during the first wave of pandemic in spring 2020, as experience of lockdowns adds to optimism that recovery to pre-pandemic levels or even above them, would take short period of time once the shops reopen.

Many retailers have found ways to reduce the impact of the latest lockdown by improving or opening online shopping operations that boosted the share of online shopping to a record high at 36.1%, with expectations that online sales would probably stay high after the lockdowns at about 30% of all sales, as progress towards online buying has been achieved in just 12 months, compared to initial expectations that the process would take around ten years.

The Bank of England expects the degree to which households spend their savings accumulated during the lockdown will determine the pace of the recovery from Britain’s worst economic downturn in over three centuries.

Prime Minister Boris Johnson plans to start easing measures from March 29 while non-essential retailers are expected to open on April 12.