Increased discounting and sales prompted the largest increase in retail sales volumes in nearly two years in January, as consumers splashed out on bigger ticket items.
Sales volumes rose by 1.8% in January 2026, marking the largest monthly rise since May 2024, and pushing volumes up 4.5% compared to a year ago.
While supermarket volumes were down 0.2% in the ONS’ rolling three-month comparison, uplifts in non-food categories, household and automotive fuel more than offset other categories’ weakness.
Strong discounting and wet weather pushed shoppers online to pursue deals, with online sales values up 14.7% compared to January 2025. Total consumer spend rose 1.6% over the month.
Deloitte retail partner Cande Cooper said: “The growth across non-food stores and household goods stores points to consumers prioritising finding the best deals, but the bigger picture could be that some are starting to loosen the purse strings. The wet and stormy weather of January also led to a boost to online sales as consumers opted to shop online rather than venturing out to the high street.
“In the last quarter we saw consumers starting to feel better about the state of the UK economy. With inflation continuing to ease, and further interest rate cuts expected, these results could be a sign that consumers may be more empowered to spend on non-essentials in the coming months.”
Lloyds’ head of consumer, Sandra Prince, added that the increased focus on online had led to fiercier competition for consumers’ online spend: “Retailers are increasingly investing in Technology and automation, with many sharpening their focus on social commerce and ensuring products are discoverable through AI searches.
“Many are also strengthening the digital infrastructure of their loyalty programmes to deliver more personalised offers that help retain customers and further boost sales.”
No comments yet