Retail sales pick up in January after consumers hold off on Christmas spending

Retail sales finally picked up in January after consumers held off on Christmas spending in anticipation of the new year sales, figures show.

Total UK retail sales increased by 2.7% year on year in January, above the 12-month average growth of 2.3%, according to the British Retail Consortium (BRC) and KPMG.

Food sales were up 3.8% on a year earlier, while non-food sales increased by 1.7% – above the 12-month average of 1.1%.

In-store sales of items other than food were up 2% on the year, again above the 12-month average of 0.9%

Online non-food sales increased by 1.3%, although this was below the 12-month average growth of 1.4%.

BRC chief executive Helen Dickinson said: “A drab December gave way to a brighter January as retail sales picked up pace.

“Many shoppers had held off Christmas spending and waited for the January sales, with the start of the new year showing the strongest growth. And bargain hunting was not limited to online, with in-store sales showing the highest growth in over six months.”

Linda Ellett, UK head of consumer, retail and leisure markets at KPMG, said: “The year started well for the retail sector, with welcome sales growth.

“January sales enticed consumers to spend, with personal electronics, furniture and children’s clothes and toys all among the best performing categories. New year health and personal care goals led to related spending, including on wellness-focused food and drink items.

“Many retailers will be pleased that their promotional strategies worked in January, but they remain acutely aware of the challenge of consistently growing sales volumes when consumers continue to be cautious about, and savvy with, their spending.”