Supermarkets struggled in January, ONS figures show

British retail sales increased by 1.8 per cent in January as non-food retailers outperformed struggling supermarkets, Office for National Statistics (ONS) figures reveal.

Automotive fuel sales, art galleries and technology retailers drove this expansion, the ONS said, which was partly offset by declining supermarket sales.

Retail sales rose marginally on a three-month basis, climbing 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 cautioning they may have to cut jobs as Labour’s employment reforms come into effect.

January’s sales growth is substantial compared to 0.4 per cent growth in December, as reported by City AM.

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.”

Whilst 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 robust sales in commercial art galleries in January.

The value spent in food retailers plummeted 31 per cent from £22.9m in the busy Christmas period to £15.7m in January. Computer, telecommunications and furniture retailers have also experienced robust performance in recent months.

Online sales rose by 10.8 per cent year-on-year for the three months to January, and increased by 1.8 per cent compared to the three months to October 2025.

This was partly due to higher rainfall which deterred Brits from visiting physical retailers, according to the ONS.

Marty Bauer, a senior ecommerce specialist 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, stated: “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.”

Anthony Albanese has described the arrest of the former Prince Andrew as an “extraordinary fall from grace.”

In an interview with The Guardian’s “Australian Politics” podcast, the Australian Prime Minister also shared his thoughts about whether the arrest will lead to another republic referendum.

Albanese Comments on Andrew Mountbatten-Windsor’s Arrest

According to The Guardian, Albanese called the allegations against Andrew Mountbatten-Windsor “very serious.”

The former prince has been accused of sharing confidential information with Jeffrey Epstein during his time as a trade envoy for the British government.

“These are very serious allegations, and because they will be, no doubt, the subject of court action, I’m limited in what I can say,” Albanese said.

The prime minister noted, “But people will be following the detail here. This appears to be about [classified] documents, and whether they were inappropriately forwarded on to someone who wasn’t eligible.”

“But, of course, there’s the bigger issue as well when it comes to Andrew Mountbatten-Windsor,” he added. “No doubt, we will wait and see where this all goes.”

Albanese also reveals that the government is not planning another republic referendum amid the controversy surrounding the royal family.

“I’m a republican but we had a referendum during the last term,” Albanese pointed out. “Referendums are hard to pass in Australia.”

“I have respect for King Charles, I must say, and for Queen Camilla. I have had a good relationship with him,” he went on to explain. “He very much loves Australia. And his visit here, I must say, was a very positive one.”

However, Albanese made sure to emphasize that his comments do not “change the fact I think there should [eventually] be an Australian head of state.”

The Arrest of Andrew Mountbatten-Windsor

Andrew Mountbatten-Windsor was arrested on Thursday, which happened to be his 66th birthday, as he is accused of misconduct in public office.

According to The Independent, the former prince was held in the Aylsham police station, where he was questioned for 11 hours.

Mountbatten-Windsor was photographed leaving the police station as he was released under investigation. He has returned to Sandringham.

Jewellery and Footwear Lead Growth
Gaurav Jogani from JM Financial Institutional Securities in an interview to ET Now highlighted that the jewellery segment drove significant growth, largely due to gold prices rising 65% year-on-year. “Apart from this, the footwear segment was a surprise. Casual premium footwear players grew in the mid-teens, and grocery players also performed well. Apparel had a mixed bag performance due to an early festive season shift and a delayed winter,” he noted.

QSR Players Adjust to Consumer Trends
The quick-service restaurant (QSR) sector continues to stabilize, but growth is largely driven by pricing strategies. Jogani explained, “Most QSR players have started to drive value through discounts and combo offers. While transactions have stabilized, price discounts are leading to lower same-store sales growth.”

Margins and Cost Rationalisation
Margins in the QSR space have been better than expected, aided by cost-cutting measures and rationalization of unnecessary discounts. “Gross margins improved, and cost management led to better than expected margins. We expect this trend to continue into Q4, though sequentially margins may dip as it is a non-seasonal quarter,” Jogani added.

Balancing Discounting and Brand Equity
On the impact of discounting on long-term brand value, Jogani observed, “The intensity of discounting has reduced. Players are now focusing on value combos to drive footfalls. This has helped improve gross margins while sustaining consumer interest.”

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Company Highlights and Sector Outlook
Among discretionary stocks, Titan remains a strong performer, demonstrating robust topline growth despite gold price volatility. “Titan is driving EBITDA growth in a calibrated manner, leading to earnings upgrades,” Jogani said. Footwear brands have shown signs of revival, and the sector may benefit from GST transitions extending to smaller discretionary items.
Valuation Perspectives
Valuations across QSR and discretionary sectors have corrected from historical highs, with downside limited, according to Jogani. “If SSSG growth rates revive, we could see a bottom in valuations and earnings,” he said.Competition and Industry Consolidation
Jogani downplayed the threat from regional cloud kitchens, pointing out consolidation in the sector due to macroeconomic pressures and funding constraints.

Key Metrics to Watch
For the upcoming quarter, same-store sales growth and brand contribution margins will be the primary focus, along with sustained cost rationalization and advertising efficiencies.

Top Picks in the Sector
Highlighting preferred stocks, Jogani identified Titan, Lenskart, Metro Brands, and Vishal Mega Mart in the discretionary space. In QSR, Devyani and Sapphire remain recommended buys.

Samsung’s Galaxy S25, the compact flagship launched just last year, has seen a notable price reduction in India ahead of the highly anticipated Galaxy S26 series unveiling. With the Galaxy Unpacked event scheduled for February 25, 2026, retailers like Flipkart and Amazon are offering attractive discounts, bank offers and exchange bonuses to clear inventory and entice buyers.

The standard Galaxy S25 (12GB RAM + 256GB storage variant) originally launched at Rs 80,999 in India. Recent listings show it now priced at Rs 74,999 on major platforms—a direct drop of Rs 6,000. Additional incentives push the effective price even lower.

On Flipkart, the device is listed at Rs 74,999. Customers using select bank cards, such as Flipkart Axis or SBI cards, can claim an instant discount of up to Rs 3,750, bringing the effective cost to around Rs 71,249. No-cost EMI options start as low as Rs 3,624 per month over 24 months, making the premium smartphone more accessible. Exchange offers provide up to Rs 51,100 off depending on the old device’s brand, model and condition.

Amazon India shows similar promotions, with the 12GB + 256GB model available around Rs 74,999 in some color variants, though select listings reflect deeper cuts to Rs 67,900 after initial discounts of Rs 12,100 or more from launch pricing. Bank offers on certain cards add another Rs 1,500 off, potentially dropping the effective price to Rs 66,500 or lower. Exchange bonuses reach up to Rs 35,950, further enhancing savings for upgraders.

These reductions align with Samsung’s typical strategy before new flagship launches. The Galaxy S26 series, including the S26, S26+ and S26 Ultra, is set for global announcement on February 25, with India availability expected shortly after. Rumors suggest the S26 will feature refinements like enhanced Galaxy AI tools, improved on-device processing via Edge Fusion tech, better low-light photography and privacy-focused displays.

The current Galaxy S25 remains a strong contender with its Qualcomm Snapdragon 8 Elite processor, 50MP triple rear camera system with ProVisual Engine, 4000mAh battery and advanced Galaxy AI features for content creation and editing. It offers a 6.3-inch Dynamic AMOLED 2X display with 120Hz refresh rate, seven years of OS updates and robust build quality.

Analysts note that pre-launch discounts on previous models help Samsung maintain momentum and reduce stockpiles. For buyers not waiting for the S26’s potential upgrades—such as a rumored Snapdragon 8 Elite Gen 5 chipset or expanded AI capabilities—the S25 now represents excellent value in the premium segment.

Other variants see movement too. The Galaxy S25+ (12GB + 256GB) appears around Rs 74,999 to Rs 69,302 on select platforms after coupons and offers, down from its Rs 99,999 launch price. The Galaxy S25 Ultra has seen steeper cuts, with some models dipping below Rs 1,10,000 after discounts and bank offers.

Shoppers should compare platforms for the best combo of base price, bank discounts, EMI and exchange value. Prices fluctuate based on color, storage and ongoing promotions, so checking live listings is recommended. Pre-order perks for the S26 may include double storage upgrades or accessory credits, but current S25 deals provide immediate savings without waiting.

As the February 25 Unpacked event approaches, excitement builds for the S26’s teased content-creation tools and privacy enhancements. For now, the Galaxy S25’s price drop offers a timely opportunity for those seeking flagship performance at a reduced cost.