Retail sales in the United Kingdom rose by 2.5% year-on-year in January 2025, showing a slowdown from the 3.1% increase in December but still significantly exceeding market expectations of just 0.2%.
UK retail sales rise in January
Sales of non-food items climbed 2.5% year-on-year in January, marking a notable improvement compared to the 2.8% decline recorded during the same period last year. This rise was driven by strong consumer demand for discounted furniture, bedding, and home accessories, as shoppers sought to refresh their living spaces in the new year.
Food sales growth slows
Food sales also experienced growth, rising by 2.8% compared to the previous year. However, this growth represented a deceleration from the 6.1% annual increase recorded in January 2024, reflecting the broader economic challenges consumers are facing.
BRC comment
Helen Dickinson, Chief Executive of the British Retail Consortium (BRC), noted, “While this strong performance is encouraging, it remains uncertain whether it can be sustained in the coming months. Inflationary pressures are mounting, compounded by £7 billion in new costs for retailers.” These rising costs, combined with ongoing economic uncertainty, suggest that the retail sector could face significant challenges in maintaining current growth levels in the months ahead.
