Report Summary

Period covered: 01 February - 28 February 2026

3 minute read

Note: This report summary is one or two months behind the current month as standard reporting practice. The content is indicative only and incomplete with certain data undisclosed. Become a member to access this data or take out a free 30 day membership trial now.

Online performance

Online retail maintained strong growth in February, with sales rising xx year-on-year, a sharp acceleration from the xx increase recorded a year earlier.

This marks a notable outperformance relative to total retail, with digital channels continuing to capture a greater share of consumer spend despite a softer overall market.

Average weekly online sales reached £xxm, up from £xxm last year, while online penetration increased to xx of total retail sales, up from xx% a year earlier.

Key drivers

February’s online performance was driven by a combination of structural demand and short term external factors, with the channel benefiting from both behavioural shifts and operating conditions.

Weather played a central role in supporting demand. One of the wettest Februarys on record reduced store visits and encouraged consumers to shop from home. This effect was particularly visible in grocery, where online demand accelerated sharply as households opted for convenience and avoided store trips.

Online also benefited from ongoing changes in consumer purchasing behaviour. Shoppers continue to favour convenience, speed and price transparency, with online platforms offering easy comparison and access to promotions.

This was particularly evident in Non-Store Retailing, where growth of xx% suggests that pureplay retailers continue to capture share through sharper pricing, broader assortments and frictionless fulfilment.

Promotional activity remained an important driver. While the intensity seen in January eased, targeted online discounting continued to support conversion, particularly in categories where demand had softened.

Event-driven demand also supported performance. Valentine’s Day contributed to strong online sales in gifting categories and premium grocery, with rapid delivery services capturing last-minute purchases.

Macroeconomic backdrop

The macroeconomic environment remained a key influence on online behaviour in February.

Consumer confidence weakened, falling to xx, as concerns around inflation and geopolitical developments weighed on sentiment. Households remained cautious, with many prioritising essential spending and limiting exposure to higher value purchases.

Inflation trends were more stable in February, though forward risks have increased. Headline CPI held at xx year-on-year, unchanged from January. Clothing made the largest upward contribution to the monthly movement, while motor fuels provided the largest downward contribution, with fuel prices captured before the late-February escalation in the Middle East.

The near-term outlook has become less certain. The Bank of England noted that recent geopolitical developments have increased the risk of higher energy costs, with internal estimates pointing to CPI remaining between xx and xx over the coming quarters.

Monetary policy remained restrictive, with interest rates held at 3.75% and expectations for cuts pushed further out due to the conflict in the Middle East.

Household finances also remained under pressure. Unsecured borrowing increased, with credit card usage remaining elevated, suggesting some consumers are using credit to support spending. prioritisation.

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Proportion of online retail sales by category (Period aligned to ONS trading calendar – 1 – 28 February 2026)