UK retail volumes fall for fourth month in January

The measure of retail sales volumes in the UK fell to -24 in January 2025, marking the sector’s fourth consecutive month of decline. This is the lowest reading in five months, down from -15 in December and significantly below market expectations of -5.

UK retail volumes fall for fourth month in January

Retail sales volumes for January were deemed "poor" for the time of year (-24 compared to -23 previously), while internet sales volumes declined at an even faster rate (-22 versus -8 in December). Looking ahead, retailers, wholesalers, and motor traders anticipate the sales slump to persist into February.

Analyst comment

Commenting on the situation, Martin Sartorius of the CBI emphasized the urgency of supporting the economy amid weak growth figures: "With recent data underscoring the need to inject momentum into the economy, the government should explore policy options to boost confidence across key sectors, including retail. As businesses brace for cost increases in April due to Budget measures, it is vital to press ahead with reforms to the inequitable business rates system and provide much-needed flexibility in the Apprenticeship Levy."

Concerns on UK economy

The ongoing challenges highlight growing concerns over consumer demand, exacerbated by higher operating costs and waning confidence within the retail sector, further pressuring policymakers to address structural issues in the economy.