Retail sales bounced back strongly in January with a 1.7% rise after the sector suffered a lacklustre Christmas. Figures from the Office for National Statistics (ONS) show the rise was the strongest since last May. It was driven by stellar supermarket food sales as diners stayed at home rather than eat out in restaurants. Independent food stores such as butchers and bakers also did well.
Food sales volumes shot up 5.6% in the month, the biggest increase since the start of the pandemic in March 2020. The ONS said retailers suggested that the increase was because of more people eating at home in January.”. Online sales also grew strongly with a 2.4% gain, but the rest of the high street was weaker with sales down 1.3%.
The ONS said: “Clothing retailers and household goods stores suggested the fall was because of reduced consumer confidence.”. The ONS also revised down its figure for December now saying that sales fell 0.6% rather than its previous estimate of 0.6%.
Over the three months to January sales fell 0.6% compared with the previous thre months but rose by 1.4% on the same quarter a year previously. Volumes were down by 1.3%, compared with their pre-pandemic level in February 2020. ONS Senior Statistician Hannah Finselbach said: “Retail sales rebounded strongly in January following four months of consecutive falls.
“This was driven by a robust month for food sales, which saw their largest rise since March 2020. Supermarkets, alcohol and tobacco stores as well as specialist shops like butchers and bakers all reported strong trading. “However, clothing shops and household goods stores had less of a successful month with retailers reporting lacklustre sales due to weak consumer confidence.
“Looking at the broader picture, retail sales have decreased across the three-month period and are below pre-pandemic levels.”. Aled Patchett, head of retail and consumer goods at Lloyds, said: “Today’s rise offers a welcome boost to the sector and underlines the work businesses have undertaken to successfully navigate a tough trading environment. With food stores and online retailers performing well, it suggests that some have had a slightly better than expected start to 2025.”.
