Supermarkets struggled in January, ONS figures show
January’s retail sales boost was driven by art galleries and tech retailers(Image: PA Archive/PA Images)
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.”