UK online sales rise 11.4% in February despite dip

UK online sales values rose 11.4% year on year in February, according to Office for National Statistics retail data highlighted by Parcelhero. Overall retail sales volumes increased 2.5% from a year earlier.

The figures point to a stronger month for consumer spending than the same period last year, with growth also visible in the latest three-month ONS measures.

Overall retail sales volumes for the three months to February were 3% higher than in the same period a year earlier. Over the same period, online spending values rose 12.1%, suggesting eCommerce remained a notable source of retail growth.

That annual picture contrasted with a weaker month-on-month reading. Compared with January, overall retail sales volumes fell 0.4% in February, while non-store retailing volumes – a category largely made up of online sales – slipped 0.5%.

Even so, the value of online spending edged higher every month. Online sales values rose 0.6% from January, indicating that although shoppers may have bought fewer goods online, they spent more overall.

The figures underline the mixed state of the consumer economy. Annual comparisons suggest households spent more freely than a year earlier, but the monthly decline in volumes points to weaker momentum after January.

Parcelhero also warned that the wider geopolitical backdrop could weigh on retail sentiment in the next set of figures.

David Jinks, Head of Consumer Research at Parcelhero, said the latest retail sales estimates for February offered “much to cheer”. Overall sales volumes rose 2.5% year on year, and the outlook for eCommerce was even stronger, with the amount Britons spent online up 11.4% compared with February 2025.

“Of course, monthly retail figures are notoriously volatile, which is why the ONS is increasingly concentrating on three-month figures. Here again, overall retail sales volumes were 3% higher for the three months to February 2026 than for the same period last year. Even more strikingly, online spending values rose 12.1% year on year when comparing the three months to February 2026 with the same period to February 2025,” said Jinks.

“However, the picture was more mixed when compared with the previous month. Overall retail sales volumes are estimated to have fallen 0.4% in February from January, with non-store retailing volumes – the category primarily made up of online sales – falling 0.5%. Encouragingly, though the amount of goods bought online in February may have slipped, online sales values – the amount of money spent – rose 0.6% from January, perhaps indicating shoppers were prepared to spend a little more on higher-value items once the January sales had finished,” he continued.

He highlighted that “retail in February 2026 was considerably healthier than in the same month last year”, but warned that broader geopolitical risks could overshadow recent gains. “The elephant in the room,” he said, is President Trump’s attack on Iran. With the US and Israel launching surprise air strikes on 28 February and the conflict widening since, he said the March retail estimates, due on 24 April, will provide an early indication of how consumer confidence has been affected.

“Ultimately, however fickle or strong key retail periods prove to be, stores with both a High Street and online offering are best protected against unexpected events. Parcelhero’s report ‘2030: Death of the High Street’, which has been discussed in Parliament, argues that retailers must develop an omnichannel approach, embracing both online and physical store sales,” said Jinks.

Mixed signals

The divergence between annual and monthly data is likely to draw attention from retailers trying to judge whether demand is strengthening or merely stabilising. Value growth can reflect shoppers buying more expensive items, paying higher prices, or a combination of both, while volume data gives a clearer measure of how much consumers actually purchased.

Non-store retailing remains an important indicator because it captures much of the UK’s online trade. A monthly fall in that category alongside a rise in online spending values suggests basket sizes or average selling prices may have increased even as transaction volumes softened.

Consumer mood

The reference to Iran highlights how quickly external shocks can alter the retail outlook. Rising geopolitical tensions can feed through to energy costs, transport prices and consumer confidence, all of which shape household spending decisions.

For retailers, that creates a difficult backdrop even after a stronger annual showing in February. Businesses with both shop and online operations may be better placed to absorb swings in demand between channels, particularly when consumer behaviour shifts suddenly.

The latest figures add to evidence that digital spending remains resilient even when broader retail performance is uneven. Online spending values outpaced total retail volume growth by a wide margin on both the year-on-year monthly and rolling three-month measures.

Whether that trend continues will depend on the next official readings on consumer activity and on whether households remain willing to spend amid a more uncertain international backdrop. For now, February offered retailers a firmer annual comparison, but it also exposed signs of fragility beneath the headline growth.