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By Sean Poulter

PUBLISHED: 20:38 EST, 4 March 2013 | UPDATED: 05:52 EST, 5 March 2013

Shoppers opened up their purses in February causing retail sales to rise at their fastest annual rate for three years.

Sales of big-ticket items, such as furniture and kitchen equipment, were buoyed by evidence of a pick-up in the housing market.

The figures, which will fuel hopes of  avoiding a triple-dip recession, were published by the British Retail Consortium.

Boost: Shoppers opened up their purses in February causing retail sales to rise at their fastest annual rate for three years

Total retail sales in February were up by 4.4 per cent on the same month last year – the biggest annual increase since February 2010.

And underlying sales saw the biggest yearly rise since December 2009, rising by 2.7 per cent for the month.

The increases sent some shafts of sunlight through the clouds hovering over high streets caused by the demise of famous names like Comet, HMV, Jessops and Blockbuster.

But the BRC added that online sales were up 10.9per cent, confirming a shift in habits away from bricks and mortar outlets towards shopping on the web.

Department stores, which are making a drive to boost online sales with click and collect services, had a particularly good month on fashion, tablets, furnishings and Valentine’s Day gifts.

Director general of the BRC, Helen Dickinson, said: ‘After the disappointing figures that brought 2012 to a close, it’s reassuring that the sales momentum established during an encouraging January has built not faded.

Good news: Sales of big-ticket items, such as furniture and kitchen equipment, were buoyed by evidence of a pick-up in the housing market

‘There are certainly highly-welcome signs here of gradual improvement and customers feeling a bit more positive.

‘February saw growth across all parts of retailing, with big-ticket goods and items for the home recovering particularly well, possibly reflecting better conditions in the housing market.’

However, she stressed it was too soon to assume that the figures represent a permanent return to growth.

Retailers have issued a plea to the Chancellor, George Osborne, to help the high street by putting off a planned increase in business rates in April.

Head of retail at KPMG, David McCorquodale, said: ‘February’s data will provide a much needed fillip to retailers’ confidence levels. 

Against all expectations, retail sales rose this month to achieve the strongest underlying sales growth for three years. 

‘Relatively dry, if cold, weather and the occasional day of spring sunshine helped to lift clothing sales as well as drive footfall in the general direction of the department stores, with non-food and furnishing and flooring categories showing strong performances.’

He warned: ‘If the proposed rise in business rates goes ahead then retailers will be placed under inexorable pressure. However, if the Chancellor chooses to freeze rates, then he could give the sector some much needed breathing space to tackle the significant pressures it is facing.’

The best sales performers in February were clothes, particularly for children, jeans, dresses and floral prints, together with handbags and fashion jewellery.

Bedroom furniture, sofas, beds, sheets and duvets, cookware, carpets and curtains did well.
Sales of tablets and computers continued to do well, while there were also signs of a recovery in white goods, microwaves and irons.

A separate study by Visa Europe confirmed a recovery in consumer confidence. It found a rise of 0.8per cent in consumer spending in February versus January.

Its commercial director, Dr Steve Perry, said: ‘Consumer spending is improving modestly so far this year. This represents a second successive monthly improvement in spending following a rise in January of +0.9per cent.

‘The combined effect of two months of expenditure growth increases the likelihood that the UK will avoid recession in Q1 2013 given the significance of consumer spending to GDP.’