UK Retail Sales See 1.7% January Growth, Driven by Food Purchases
Food sales experienced their largest increase since March 2020, offsetting declines in non-food categories and online shopping.
- Retail sales in the UK rose by 1.7% in January, surpassing analysts' expectations of 0.3%-0.5% growth.
- The increase was primarily driven by a 5.6% surge in food sales, the largest monthly rise since the start of COVID-19 lockdowns in March 2020.
- Non-food retailers, including clothing and household goods stores, saw a 1.3% decline in sales, reflecting continued weak consumer confidence.
- Online retail spending fell by 1.7%, reducing its share of total retail sales to 25.7%, down from 26.9% in December.
- Despite the January rebound, retail sales remain 1.3% below pre-pandemic levels, with broader three-month consumption trends still in decline.