Retail sales have seen a decline in February, following the surging cost of living and the spiking price of oil.
The high street is feeling the chill of customer absences, with a 30-year high rate of 6.2% inflation seeing consumers watch their budgets as costs set course for a continued upwards trajectory.
Retailers reportedly enjoyed a slight uptick in sales as Covid-19 restrictions eased, enticing customers to purchase new outfits for nights out, but a decline in sales is almost certain as the rising costs kick in across supply chains.
The price of oil continued to remain above $115 per barrel in early morning trading on Friday, with Brent Crude set at $116 per barrel.
Analysts have projected potential heights of up to $200 per barrel by the end of 2022 unless an alternative to Russian supply can be found.
Russian oil accounted for around 4 million barrels of oil per day in global exports before the Ukraine invasion.
The climbing costs will no doubt see the high street suffer, as energy prices and supply chain costs look set to cripple retailers already suffering from two long years of the Covid-19 pandemic.
“The pain of higher prices is already hurting with UK retail sales retreating in February,” said Hargreaves Lansdown senior investment and markets analyst Susannah Streeter.
“The easing of restrictions did provide some bounce for fashion retailers, as new outfits were purchased for long awaited nights out, but it brought a drop in sales for food retailers, as consumers swapped gourmet meals in for restaurant meals out.”
“With the only way up for prices, with retailers lining up to prepare customers for hikes, it’s likely this drop in sales is the first sign of fresh falls to come.”