UK Retail Sales Show Modest Growth in January, Fueled by Non-Food Sectors

UK retail sales experienced a modest increase of 1.8 per cent in January, according to figures released by the Office for National Statistics (ONS). This growth was primarily driven by strong performance in non-food retail sectors, offsetting struggles within the supermarket industry [1].

Growth Drivers and Declines

The ONS reported that automotive fuel sales, art galleries, and technology retailers were key contributors to the overall growth. Conversely, supermarket sales experienced a decline, partially dragging down the total retail performance [1]. On a three-month basis, retail sales saw a slight increase of 0.1 per cent to January.

Value of Sales Decreases

While the volume of retail sales increased in January, the total value of spending decreased by 37 per cent, falling from £59.9 million in December to £37.9 million in January. The decline in spending at food retailers was particularly significant, with a 31 per cent drop from £22.9 million in December to £15.7 million in January [1].

Strong Performance in Specific Sectors

Computer, telecommunications, and furniture retailers demonstrated sustained strong performance in recent months. Online sales also saw a boost, increasing by 10.8 per cent year-on-year for the three months to January, and by 1.8 per cent compared to the three months to October 2025. The ONS attributed this increase, in part, to higher rainfall, which discouraged in-person shopping [1].

Industry Reaction

Grant Fitzner, ONS chief economist, noted that retail sales rose slightly in the latest three months, with sales picking up in the new year following a weak November. He highlighted the increase in motor fuel sales and the strong performance of art works, tech retailers, and furniture stores, while acknowledging the offsetting decline in supermarket sales [1].

Nicholas Found, head of commercial content at Retail Economics, commented that retail remains a market where value is prioritized, but volumes are lagging. He noted that while inflation is easing, growth in underlying units remains subdued as households spend cautiously. Found also pointed to the mounting employment and operating costs faced by retailers, forcing them to seek productivity gains and compete more intensely for demand [1].