Retail sales pick up in January

UK retail sales saw year-on-year growth of 2.2% in January following December’s report of the worst trading performance in a decade.

According to the British Retail Consortium’s (BRC) Retail Sales Monitor, like-for-like sales saw an increase of 1.8% compared with the same month last year. Food items did well with a three-month average year-on-year rise of 2.4% while non-food items sales dropped slightly by 0.4% when compared with the same period last year.

Overall, all categories saw a three-month year-on-year average uptick of 0.8%. Despite the improved performance, the BRC said it was “looking nervously to the future” as online sales continue to grow.

KPMG said fashion sales were boosted by colder weather and discounting, while an “increased focus indoors” contributed to furniture sales.

Helen Dickinson OBE, chief executive of BRC, said: “There was a welcome return to growth this month after December’s disappointing sales figures. But while retail discounts helped tempt cautious consumers, there is no guarantee this momentum will continue after the sales have finished.”

Paul Martin, UK head of retail, KPMG, added: “Following the worst December trading performance in a decade, January brought a welcome improvement with total retail sales up 2.2%. Having said that, this increase points more to British shoppers’ obsession of bagging a bargain and price inflation, rather than any real improvement, and these peaks and troughs continue to leave retailers feeling increasingly anxious.”