A drab December gave way to a brighter January as retail sales picked up pace, says the latest British Retail Consortium (BRC) data.
According to the latest BRC-KPMG Retail Sales Monitor, UK Total retail sales increased by 2.7% year on year in January, against a growth of 2.6% in January 2025. This was above the 12-month average growth of 2.3%.
Food sales increased by 3.8% year on year in January, against a growth of 2.8% in January 2025. This was flat against the 12-month average growth of 3.8%.
Non-Food sales increased by 1.7% year on year in January, against a growth of 2.5% in January 2025. This was above the 12-month average growth of 1.1%.
In-Store Non-Food sales increased by 2.0% year on year in January, against a growth of 2.6% in January 2025. This was above the 12-month average growth of 0.9%
Online Non-Food sales increased by 1.3% year on year in January, against a growth of 2.2% in January 2025. This was below the 12-month average growth of 1.4%.
The online penetration rate (the proportion of Non-Food items bought online) increased to 37.2% in January from 35.7% in January 2025. This was below the 12-month average of 37.4%.
Helen Dickinson, Chief Executive at the British Retail Consortium, said: “Many shoppers had held off Christmas spending and waited for the January sales, with the start of the new year showing the strongest growth. And bargain hunting was not limited to online, with in-store sales showing the highest growth in over six months.
“While retailers welcomed the increase in spending, many challenges remain in 2026. Consumer confidence, while improving, remains weak; costs of energy and packaging are rising, and the new Employment Rights Act could limit the ability of retailers to offer more flexible jobs. The Government must focus on getting the last of these right – ensuring protections for workers without damaging the availability of the jobs themselves. This is essential as unemployment continues to climb.”
Linda Ellett, UK Head of Consumer, Retail & Leisure, KPMG, said: “The year started well for the retail sector, with welcome sales growth. January sales enticed consumers to spend, with personal electronics, furniture, and children’s clothes and toys, all among the best performing categories. New Year health and personal care goals led to related spending, including on wellness focussed food and drink items.
“Many retailers will be pleased that their promotional strategies worked in January, but they remain acutely aware of the challenge of consistently growing sales volumes when consumers continue to be cautious about, and savvy with, their spending.”
