UK retail sales rise by 1.7% in January

UK retail sales volumes increased by 1.7% in January driven largely by food sales, the ONS has revealed. According to the new figures, sales volumes fell by 0.6% in the three months to January 2025, compared with the three months to October 2024, but rose by 1.4%, compared with the three months to January 2024. Monthly index levels in January 2025 were their highest since August 2024 and sales volumes rose by 1.0% over the year to January 2025. However, volumes were down by 1.3%, compared with their pre-coronavirus pandemic level in February 2020. The performance was largely driven by food sales which rose by 5.6% on the month, the largest rise since March 2020. This follows four consecutive falls on the month, ending in December 2024 when index levels were their lowest since April 2013. Supermarkets, specialist food stores like butchers and bakers, and alcohol and tobacco stores all rose over the month. Retailers suggested that the increase was because of more people eating at home in January. Non-store retailers' sales volumes also rose 2.4% on the month, partially rebounding from a 3.4% fall in December 2024. Retailers in this sector reported post-Christmas sales remaining strong. However, sales in non-food stores – the total of department, clothing, household and other non-food stores – fell 1.3% over the month. Clothing retailers and household goods stores suggested the fall was because of reduced consumer confidence. Commenting on today’s retail sales figures for January, ONS senior statistician Hannah Finselbach, said: “Retail sales rebounded strongly in January following four months of consecutive falls. However, clothing shops and household goods stores had less of a successful month with retailers reporting lacklustre sales due to weak consumer confidence. “Looking at the broader picture, retail sales have decreased across the three-month period and are below pre-pandemic levels.” Kris Hamer, director of insight at the British Retail Consortium, added: “2025 got off to a good start with retail sales managing to weather the stormy January. Retailers put on extensive promotions, and customers who were looking to upgrade their furniture and household electrical appliances made the most of the many bargains that there were to be had. But, with consumer expectations for the economy falling almost 40pts since July 2024 and an unsteady job market, the next few months are hard to predict. “This boost to sales barely touches the sides of the £7bn in new costs from the Budget and packaging levy facing the industry this year. The industry is already paying more than its fair share of tax and with retailers already doing all they can to absorb existing costs, retailers will be left with little choice but to increase prices or reduce investment in jobs and shops, or both. To mitigate this, the Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”

UK retail sales rise by 1.7% in January

The performance was largely driven by food sales which rose by 5.6% on the month, the largest rise since March 2020

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