Retail sales volumes in the UK increased 1.7% in January 2025 in a significant recovery from the 0.6% dip experienced in December 2024, according to the latest ONS Retail Sales Index figures.
The recent surge has propelled monthly index levels to their highest point since August 2024, with year-on-year growth of 1%.
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Despite this positive momentum, retail volumes still remain 1.3% below the pre-pandemic levels of February 2020.
A broader view reveals a 0.6% decline over the three months leading up to January 2025, compared with the preceding three months.
The downward trend was influenced by weaker sales in November and December. However, compared to the same period of the previous year, there was an encouraging rise of 1.4%.
During the month, food stores experienced a significant uptick in sales volumes, soaring by 5.6% – the largest increase since March 2020.
This followed a period of four consecutive monthly declines that culminated in December 2024 with the lowest index levels since April 2013.
The rebound is attributed to more consumers choosing to eat at home during January, as reported by supermarkets and specialist food retailers such as butchers and bakers.
Non-store retailers also saw a partial recovery with a 2.4% increase in sales volumes on the month, bouncing back from a 3.4% fall in December 2024. Post-Christmas sales have remained robust, according to retailers in this sector.
Conversely, non-food stores, encompassing department stores, clothing outlets, household goods stores and other non-food retailers, experienced a decline of 1.3% over the month.
Retailers specialising in clothing and household goods cited reduced consumer confidence as a key factor for this downturn.
Online spending values dipped 1.7% over the month to January 2025 and saw a more pronounced decrease of 4.8% across the three-month period ending in January when compared with the previous quarter. Nonetheless, online sales values saw a modest year-on-year increase of 0.8%.
The total retail spend, which combines both in-store and online purchases, rose 2.6% over the month, leading to a decrease in the proportion of online sales from 26.9% in December to 25.7% in January.
British Retail Consortium insight director Kris Hamer stated: “2025 got off to a good start with retail sales managing to weather the stormy January. Retailers put on extensive promotions, and customers who were looking to upgrade their furniture and household electrical appliances made the most of the many bargains that there were to be had. But, with consumer expectations for the economy falling since July 2024 and an unsteady job market, the next few months are hard to predict.”
Recent data from the BRC and KPMG retail sales monitor revealed that UK total retail sales saw a 2.6% increase in January 2025, outperforming the 1.2% growth recorded in the same month of 2024.
