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Shoppers delaying purchases until the January sales delivered a boost to UK retail spending growth last month, in the latest sign of improved economic momentum after a weak end to last year.
The value of retail sales increased at an annual rate of 2.7 per cent in January, up from 1.2 per cent in December and above the 2025 average of 2.3 per cent, according to data published by the British Retail Consortium on Tuesday.
Helen Dickinson, chief executive of the British Retail Consortium, said: “A drab December gave way to a brighter January as retail sales picked up pace.”
She said “many shoppers had held off Christmas spending and waited for the January sales”, adding that in-store sales showed the highest growth in more than six months over the month.
The figures are the latest to show signs of improvement in January after a weak second half of 2025, when months of speculation over taxes ahead of the November Budget weighed on sentiment and activity.
The S&P purchasing manager index for services and manufacturing in January pointed to the fastest expansion of activity since August 2024. The lenders Nationwide and Halifax and property portal Rightmove reported a rebound in house prices at the start of the year. Consumer confidence rose for the second consecutive month in January, according to the research company GfK.
The BRC data, collected with the consultancy KPMG, also showed that the value of sales growth was still below the rate of annual inflation, which rose to 3.4 per cent in December, though it was close to the 2.9 per cent inflation forecast by the Bank of England for January.
Sales improved in most categories, with non-food spending rising by an annual rate of 1.7 per cent last month, above the 12-month average of 1.1 per cent. Food sales were up 3.8 per cent, in line with its one-year average.
The BRC data was published ahead of official retail sales figures on February 21 and is closely watched by economists because weak consumer spending since the pandemic has limited the UK economy’s recovery.
Linda Ellett, UK head of consumer, retail and leisure at KPMG, said that January sales enticed consumers to spend, with personal electronics, furniture, children’s clothes and toys all among the best-performing categories.
“The year started well for the retail sector, with welcome sales growth,” she said.