Art and antiques help lift retail sales in Great Britain to biggest monthly rise since 2024 | Retail industry
Retail sales in Great Britain rose 1.8% in January, the biggest monthly rise in almost two years, official data shows, as heavy discounting and post-Christmas sales lured consumers into bigger ticket purchases.
The Office for National Statistics (ONS) said the rise easily beat forecasts for a 0.2% increase and was partly due to continued strong sales from art and antique sales in January, as well as from online jewellers. This was the largest monthly increase since May 2024.
On an annual basis, retail sales volumes increased by 4.5%, again above expectations.
However, sales volumes in the three months to January increased by just 0.1% compared to the three months to October; fuel, furniture and technology were among the best-selling categories during this period.
ONS chief economist Grant Fitzner said business for retailers “continues to pick up in the new year after a weak November”. “Motor fuel sales increased slightly over the period, while sales at art, technology retailers and furniture stores also performed well.”
Economists suggested the figures offered an early sign that consumer confidence could recover after a difficult end to 2025.
Data released earlier this week showed inflation fell sharply to 3% in January from 3.4% in December; This has raised expectations that the Bank of England will cut interest rates soon, which will provide further support to consumers.
RSM UK chief economist Thomas Pugh said: “A sharp fall in inflation and two more rate cuts should support disposable income growth. The key ingredient remains consumer confidence.”
An unusually wet January led to an increase in online sales as customers chose not to venture onto the high street. E-commerce increased by 1.3% month-on-month and 14.7% compared to January last year, marking the largest annual increase since April 2021.
Rob Wood, chief UK economist at Pantheon Macroeconomics, said the figures “provide further evidence that economic activity is picking up smartly in the new year as budget uncertainty eases”.
However, he also noted that the figures were “too good to be true” in some places, with rising jewelery sales slightly exaggerating the recovery due to the rise in gold prices.
In-store household goods sales also rebounded after a weak December, with clothing sales rising slightly and food sales volumes rising 1.2% month-on-month, their strongest level since last July.
Cande Cooper, retail partner at Deloitte, said: “It’s clear that value is a priority for many consumers, with almost a third taking advantage of in-store discounts and loyalty cards to keep costs low.
“Growth in non-food stores and home goods stores signals that consumers are prioritizing finding the best deals, but the bigger picture may be that some are starting to loosen the ties on their purses.”
There has also been an increase in online sales of sports supplements, the ONS said. Paul Dales, chief UK economist at Capital Economics, said the figures suggested “the New Year’s resolution health kick makes the economy look healthier” but warned: “Households will not be able to sustain this rate of spending as employment growth remains weak and wage growth slows.”
