UK Retail Sales Experience Significant January Boost
Official figures from the Office for National Statistics reveal that British retail sales increased by a substantial 1.8 per cent during January. This growth was primarily driven by robust performance in non-food sectors, including automotive fuel sales, commercial art galleries, and technology retailers.
The positive January figures represent a notable acceleration compared to December's modest 0.4 per cent growth. However, this expansion was partially offset by declining supermarket sales, which struggled during the post-holiday period.
Diverging Performance Between Retail Sectors
While overall retail sales showed strength, the performance varied significantly across different sectors. Supermarkets experienced a particularly challenging month, with the value spent in food retailers plummeting 31 per cent from £22.9 million during the busy Christmas period to just £15.7 million in January.
In contrast, non-food retail sales performed exceptionally well. Computer and telecommunications retailers, along with furniture stores, reported robust sales figures. Commercial art galleries also contributed significantly to the overall growth, demonstrating strong consumer interest in art purchases during the month.
Three-Month Trends and Online Performance
On a three-month basis, retail sales showed more modest growth, climbing by just 0.1 per cent in the period leading up to January. Grant Fitzner, chief economist at the ONS, commented: "Retail sales rose slightly in the latest three months, as sales continued to pick up in the new year following a weak November."
Online retail demonstrated particularly strong performance, with sales rising by 10.8 per cent year-on-year for the three months to January. Compared to the three months to October 2025, online sales increased by 1.8 per cent. The ONS noted that higher rainfall during the period likely deterred consumers from visiting physical stores, contributing to the online sales boost.
Industry Perspectives and Economic Context
Marty Bauer, a senior ecommerce specialist at Omnisend, observed: "The early part of the year is now driven less by impulse purchases and more by intentional buying. Discount-led events, loyalty offers and personalised promotions will have played a crucial role in converting browsers into buyers, particularly online where price comparison is effortless."
Despite the positive sales figures, the retail sector faces significant challenges. Nicholas Found, head of commercial content at Retail Economics, stated: "For now, retail remains a market where value wins, but volumes lag. Inflation is easing, yet growth of underlying units remains subdued as households spend carefully rather than freely."
Retailers are also grappling with record-high employment costs, with chief financial officers warning that job cuts may be necessary as Labour's employment reforms come into effect. The industry must find productivity gains while competing intensely for every pound of consumer spending.
Interestingly, while the volume of retail sales grew in January, the total value of this spending actually decreased by 37 per cent, falling from £59.9 million in December to £37.9 million in January. This discrepancy highlights the complex dynamics currently shaping the UK retail landscape.
