UK retail sales inch up in January

The data showed retail sales grew 0.5% in January, following a 1.5% dip at the end of 2022.

However, sales volumes fell 5.1% compared to January 2022. Online shopping was boosted by sales promotions during the period but overall sales were still lower than pre-pandemic levels. 

This comes as prices have risen sharply since last year, mainly due to soaring energy costs, which have put pressure on millions of households.

While inflation is easing, it remains at a 40-year high of over 10%.

British Retail Consortium chief executive Helen Dickinson said:  “Widespread January Sales helped sales growth remain positive as the industry entered the new year. Despite this, the rise in consumer spending could not keep up with the double-digit inflation rates, with another fall in retail volumes. Larger purchases were hit harder as consumers tightened their purse strings or traded down to value brands. Meanwhile, clothing and footwear saw stronger growth last month.

“With consumer confidence falling slightly and high costs throughout the supply chain preventing prices from falling, it is a bumpy road for households. However, retailers are taking steps to cut costs and limit price rises where they can to help their hard-pressed customers.”