Covering the 4 weeks of 4 – 31 January
2026
- 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:
“A drab December gave way to a brighter January as retail sales
picked up pace. 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.”
Food & Drink sector performance | Sarah Bradbury,
CEO, IGD, said:
“After the end-of-year festivities, shopper confidence was muted
in January, primarily driven by concerns about future price
rises. January also brought with it extensive new grocery retail
product launches, particularly centred around health, encouraging
health-minded shoppers to trial something new. The outlook for
2026 indicates that food inflation will persist for some time
meaning some shopper concerns are well-founded. As a result, we
expect shoppers to continue to scrutinise their purchasing.”
