Retail sales increased by 0.4 per cent in January on a total basis, against an increase of 2.2 per cent in January 2019, according to the latest British Retail Consortium (BRC) and KPMG figures.

Sales were flat on a like-for-like basis from the same month last year, when they had increased 1.8 per cent.

Over the three months to January, food sales decreased 0.1 per cent on a like-for-like basis and increased 0.6 per cent on a total basis. Over the same time period, non-food retail sales in the UK decreased by 1.5 per cent on a like-for-like and 1.3 per cent on a total basis. Meanwhile, in-store sales of non-food items declined three per cent on a total and 3.3 per cent on a like-for-like basis.

Online non-food sales increased by 2.5 per cent in January, against a growth of 5.4 per cent the previous year. The non-food online penetration rate increased from 29.5 per cent in January 2019 to 30.6 per cent.

BRC chief executive Helen Dickinson said that while January saw a return to growth, recent political uncertainty and a decade of austerity appear to have ingrained a more thrifty approach to shopping among consumers.

“Furthermore, as sustainability continues to rise up the agenda, many customers are switching to more environmentally friendly products or simply choosing to buy less – these effects are not just limited to the high street as growth in online purchases also slowed.”

Paul Martin, partner and UK head of retail at KPMG, commented: “Consumer confidence has started to return post-General Election, but we have not experienced any major leaps for the sector yet.

“We have to remember, this semi-positive performance will also be the result of aggressive discounts and consumers’ preoccupation with bagging a bargain – that’s not always good news when looking at bottom-lines.”

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