UK retail sales jumped 2.7% year-on-year in January, as consumers who held off Christmas spending flocked to new year sales. The growth exceeded the 12-month average of 2.3%, marking a strong start to the year for the retail sector, according to figures from the British Retail Consortium (BRC) and KPMG.
Food sales led the growth with a 3.8% increase. Non-food sales rose 1.7%, outpacing the 12-month average of 1.1%. In-store non-food sales showed the highest growth in over six months, climbing 2%.
Personal electronics, furniture, and children's clothes and toys led category performance. Wellness-focused food and drink items also saw strong sales as consumers pursued new year health goals.
Promotional strategies pay off
Helen Dickinson, BRC chief executive, 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, noted: «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. [...] 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.»
Note: This article was created with Artificial Intelligence (AI).
