Data: Retail sales rebound in January driven by home improvement trends

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Retail sales rose in January after a disappointing December.

Retail sales excluding fuel jumped 12.8% year on year, according to the latest data from the Office of National Statistics (ONS).

Woman buying a sofa in a furniture store

Store sales of household goods, furniture and electricals rose 7.5%

Compared with pre-pandemic levels recorded in February 2020, sales values excluding fuel were also up 9.1%.

On a volume basis, sales excluding fuel rose 7.2% year on year and were up 4.4% on February 2020.

Sales in January 2022 rebounded 1.9% compared to December 2021, where sales volumes dropped 4%. This was the biggest monthly rise in sales since April 2021 when non-essential stores reopened.

The December decline was attributed to earlier Christmas shopping and Omicron fears around the festive period.

January’s sales increase was largely driven by home improvement shopping.

Non-food store sales volumes rose 3.4%, including a 7.5% uplift in sales at household goods, furniture and electricals stores, and a 7.1% rise at department stores.

Food sales volumes slipped by 2.3% over the month and were below pre-pandemic levels for the first time.

The ONS said sales volumes have broadly fallen since June 2021 as consumer spend shifted to services and eating out as the wider economy reopened.

The proportion of online sales continued to decline in January, falling to 25.3% – the lowest since March 2020 and following a downward trend since February last year.

BRC chief executive Helen Dickinson said: “Despite falling consumer confidence, retail sales held up well in January as retailers went to great lengths to keep up the Christmas momentum…

“Falling Covid cases and the slow return to offices offer further hope for town and city centres that were hardest hit by the pandemic.

“Yet, rising inflation means households may be preparing for future falls in disposable income, including from April’s National Insurance and energy price cap rises.

“Retailers face similar challenges, with increases in transport and energy costs, global commodity prices and domestic wages. While retailers are going to great lengths to mitigate or absorb these cost increases, it is inevitable that prices will rise further in the future.”