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UK retail sales slowdown in January

Feb 9, 2023 United Kingdom

Following the Christmas boom, inflationary pressures caused total retail sales to rose by 4.2% in January, around half December’s pace and down from the 11.9% growth recorded a year earlier

The figure is also below the 3-month average growth of 5.2%, but above the 12-month average growth of 2.5%. Moreover, according to the report of the British Retail Consortium (BRC) and consultancy KPMG, covering the four weeks between the 1^st and the 28^th of January, UK like-for-like retail sales rose by 3.9%, as compared to the growth of 11.9% registered in January 2022; this number is also below the 3-month average growth of 4.9% and above the 12-month average growth of 1.5%.

"With inflation running at around 10%, sales growth for January nearly halved in comparison to December to just over 4% - sending a clear signal that consumers have started the year with a tight rein on spending as they face another period of rising costs", commented Paul Martin, UK Head of Retail of KPMG.

The data also shows that food sales increased by 8.0% on a total basis and by 7.9% on a like-for-like basis over the three months to January, while non-food sales grew only by 2.9% on a total basis and 2.5% on a like-for-like basis.

"The coming months will continue to be challenging for retailers and their customers. Consumer confidence remains stubbornly low, and looming rises in household bills and mortgages mean discretionary spending will remain weak. With ongoing cost pressures and labour shortages increases in sales don't convert into increases in profits or cash", added Helen Dickinson, Chief Executive of the British Retail Consortium.

Image Credits: geolytix.com

United Kingdom Confidence Consumption Organisations Retail