UK retailers recover from festive disappointment with January uptick

(Alliance News) - UK retailers enjoyed a sales boost in January, data from the British Retail Consortium showed Tuesday, after slower trading over the Christmas period.

According to the BRC-KPMG retail monitor, sales grew 2.7% in January compared to a year earlier. This beat the 2.6% rate posted in January 2025 and the 12-month average of 2.3%.

It comes as a welcome reprieve to a disappointing December, when yearly growth slowed to a pace of 1.2%, compared with 3.2% growth in December 2024.

January food sales rose 3.8% on-year, picking up from the 2.8% pick-up measured a year earlier, but unchanged from the 12-month average.

Non-food sales were up 1.7% on-year in January, which was ahead of the 1.1% average, but slower than a year prior, when they had increased by 2.5%.

In-store sales of non-food items followed a similar trend, advancing 2.0% from the year before to beat the 12-month average of 0.9%, but remaining behind the 2.5% growth recorded in January 2025.

Online non-food sales increased 1.3% in January, slower than the previous year's 2.2% growth rate and the average 1.4% rate. The online penetration rate, which measures the proportion of non-food items bought online, ticked up to 37.2% during the month from 35.7% the year prior, but was behind the average of 37.4%.

Health & beauty was the month's strongest performer, followed by toys & baby equipment, then computing. Sales of household appliances and of clothing remained broadly flat on an annual basis, while footwear slipped below the previous year's level.

BRC Chief Executive Helen Dickinson commented: "A drab December gave way to a brighter January as retail sales picked up pace. Many shoppers had held off Christmas spending and waited for the January sales, with the start of the new year showing the strongest growth.

"While retailers welcomed the increase in spending, many challenges remain in 2026. Consumer confidence, while improving, remains weak," Dickinson cautioned.

Sarah Bradbury, who leads the Institute of Grocery Distribution, added: "The outlook for 2026 indicates that food inflation will persist for some time meaning some shopper concerns are well-founded. As a result, we expect shoppers to continue to scrutinise their purchasing."

By Holly Munks, Alliance News reporter

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