UK Retail Sales Top Forecasts in January

Retail sales in the United Kingdom rose by 2.5% year-on-year in January 2025, a slowdown from the 3.1% increase in December but still well above market expectations of 0.2%.

Sales of non-food items climbed 2.5% year-on-year in January, a significant improvement from a 2.8% decline during the same period last year.

This increase was fueled by strong demand for discounted furniture, bedding, and home accessories as consumers looked to refresh their living spaces.

Food sales also saw growth, rising by 2.8% compared to the previous year, although this marked a slowdown from the 6.1% annual increase recorded in January 2024.

Helen Dickinson, Chief Executive of the BRC, commented: “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.”