UK Retail Sales Fall for 2nd Month

UK retail sales volumes rose by 1.8% month-on-month in January 2026, comfortably surpassing market expectations of a 0.2% increase and accelerating from a 0.4% gain in December. It marked the strongest monthly growth since May 2024, as interest rate cuts and easing inflation likely lifted consumer confidence across British shopping districts. It was also the first back-to-back increase in six months, offering a welcome boost to the Labour government’s efforts to revive the economy. Growth was driven by strong demand in non-food stores, particularly for artwork and antiques. Online and mail-order retailers also performed well, with sports supplements and jewellery sales reaching notably high levels. On an annual basis, retail sales volumes climbed to a near four-year high of 4.5%, from a revised 1.9% in December and above the expected 2.8%. Over the three months to January, sales volumes edged up 0.1% compared with the previous three-month period and were 2.6% higher than a year ago.

UK retail sales volumes rose 0.4% month-on-month in December 2025, defying market expectations and reversing November’s 0.1% decline. Growth was driven by non-store retailers, with online jewellers reporting stronger demand for precious metals amid increased holiday spending. Supermarkets and automotive fuel sales also recorded modest gains, while non-food stores, including department, clothing, household, and other outlets, declined. Internet retailing performed strongly as well, rising 1.8% over the month. On an annual basis, retail sales volumes increased 2.5%, the fastest pace since April, up from a 1.8% rise in November and exceeding expectations of a 1% gain. Over the three months to December, sales volumes fell 0.3% compared with the previous three months but were up 2.1% year-on-year. For the full year, retail trade rose 1.3% in 2025, following a 0.2% increase in 2024, with all major sectors advancing except automotive fuel.

UK retail sales volumes inched down 0.1% month-on-month in November 2025, defying market forecasts of a 0.4% rise and following a downwardly revised 0.9% drop in October. This was the second straight month of decline, led by non-store retailers, with online jewelers reporting weaker demand amid stabilizing prices of precious metals. Supermarket sales also fell for the fourth consecutive month, reflecting subdued footfall. These declines were partly offset by a 1% rise in sales of non-food stores. Department stores benefited from extended Black Friday discounting, while footwear and leather goods retailers also posted gains. Additionally, sales of automotive fuel rebounded from October’s fall. On an annual basis, retail sales grew 0.6%, the same pace as in the previous month but missing market expectations of a 0.9% rise. Over the three months to November compared with the three months to August, sales volumes increased 0.6%, and were up 0.7% compared with the same period last year.