Boost for retail sales as tech and fuel drives growth
UK retail sales grew by 1.8 per cent in January as the performance of non-food retailers outshone struggling supermarkets, Office for National Statistics (ONS) figures reveal.
Automotive fuel sales, art galleries and tech retailers drove this growth, the ONS said, which was partially dragged down by falling supermarket sales.
Retail sales were up slightly on a three-month basis, growing by 0.1 per cent in the three months to January.
This comes as retailers warn they are facing record-high employment costs, with chief financial officers claiming they may have to slash jobs as Labour’s employment reforms come into effect.
January’s sales growth is high compared to December’s 0.4 per cent and “blew most expectations out of the water” according to Neil Birrell, chief investment officer at Premier Milton Investors.
Grant Fitzner, ONS chief economist, said: “Retail sales rose slightly in the latest three months, as sales continued to pick up in the new year following a weak November.
“Motor fuel sales increased a little across the period, while sales of art works, tech retailers and furniture stores also performed well. These were partially offset by falls in supermarket sales.”
While the volume of retail sales grew in January the value of this spend is down 37 per cent, from £59.9m in December to £37.9m in January.
And as supermarkets struggled, non-food retail sales performed well, driven in part by strong sales in commercial art galleries in January.
The value spent in food retailers tumbled 31 per cent from £22.9m in the busy Christmas period to £15.7m in January.
Computer, telecoms and furniture retailers also saw sustained strong performance in recent months.
Big boost for online sales
Online sales were up 10.8 per cent year-on-year for the three months to January, and up 1.8 per cent on the three months to October 2025.
This in part due to higher rainfall which kept Brits away from in-person retailers, the ONS said.
Marty Bauer, a senior ecommerce expert at Omnisend, said: “The early part of the year is now driven less by impulse purchases and more by intentional buying.
“Discount-led events, loyalty offers and personalised promotions will have played a crucial role in converting browsers into buyers, particularly online where price comparison is effortless.
Nicholas Found, head of commercial content at Retail Economics, said: “For now, retail remains a market where value wins, but volumes lag. Inflation is easing, yet growth of underlying units remains subdued as households spend carefully rather than freely.
“At the same time, retailers are grappling with mounting employment and operating costs. Retailers are being forced to find productivity gains while competing harder for every pound of demand.”