January retail sales mark strongest growth in 2 years

UK retail sales jumped by 2.6 per cent in January against growth of 1.2 per cent in the same period of 2024, according to the latest figures from the British Retail Consortium (BRC.)

Food sales were also up by 2.8 per cent year-on-year compared to growth of 6.1 per cent in January.

Chief executive of the BRC Helen Dickinson said that January marked a solid month for retail, with stores experiencing their strongest growth in nearly two years, albeit on a "weak comparable".

"Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories," continued Dickinson. "With growth across nearly all categories, only toys and baby equipment remained in decline.

"While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month. This was also helped by the earlier start of the reporting period, adding a few more post-Christmas shopping days into the mix."

She said that whether the strong performance can hold out over the coming months is "yet to be seen".

Linda Ellett, UK head of consumer, retail & leisure at KPMG said that while the January figures are a welcome start to 2025 for retailers, viewed over a three-month period including Christmas and Black Friday, non-food sales have flatlined.

"Overall, the golden quarter failed to shine," she said.

Last week, Kantar figures revealed that UK grocery sales had increased by 4.3 per cent in January as shoppers looked to healthier choices in the first month of the new year.

During the four weeks to 26 January, more than 10 per cent of the average consumer’s grocery bill was spent on fruit, vegetables, and salad, according to the latest grocery figures from Kantar.

In total, UK shoppers spent £1.2 billion on healthier items, up from £193 million in December 2024.



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