January Retail Sales - Not As Good As They First Appear

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The Office for National Statistics has reported retail sales figures in Great Britain for January:

Retail sales volumes rose by 1.7% in January 2025 following a decline of 0.6% in December
Non-food store sales volumes fell by 1.3%, Food rose by 5.6%. Clothing sales volumes fell by 2.6%
Retail sales had been expected to rise by 0.3%

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club commented: "Retail sales volumes came in much better than expected in January, but this was largely due to a significant recovery in food sales. Non-food stores saw sales decline by 1.3%, with clothing sales especially weak - hardly a sign that consumers are feeling flush."

"The large increase in food sales is clearly a positive for supermarkets, but it may be a worrying sign for other parts of the economy. More people eating at home is especially bad news for restaurants, pubs and bars. These sectors are in dire need of footfall, with their costs set to rise significantly in April following the Autumn Budget."

"The decline in clothing sales - the worst performing category in January - is also a worry. Clothing is one of the first things consumers cut back on when they are feeling the pinch."

"Overall, aside from the major supermarkets, few retailers will cheer these figures. With inflation still elevated, and the dire state of government finances suggesting further tax rises could be on the cards, UK consumers are unlikely to be splashing the cash in 2025."

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Paul Andrews - CEO Family Business United
Feb 21
1 min read

The Office for National Statistics has reported retail sales figures in Great Britain for January:

Retail sales volumes rose by 1.7% in January 2025 following a decline of 0.6% in December
Non-food store sales volumes fell by 1.3%, Food rose by 5.6%. Clothing sales volumes fell by 2.6%
Retail sales had been expected to rise by 0.3%

Charlie Huggins, Manager of the Quality Shares Portfolio at Wealth Club commented: "Retail sales volumes came in much better than expected in January, but this was largely due to a significant recovery in food sales. Non-food stores saw sales decline by 1.3%, with clothing sales especially weak - hardly a sign that consumers are feeling flush."

"The large increase in food sales is clearly a positive for supermarkets, but it may be a worrying sign for other parts of the economy. More people eating at home is especially bad news for restaurants, pubs and bars. These sectors are in dire need of footfall, with their costs set to rise significantly in April following the Autumn Budget."

"The decline in clothing sales - the worst performing category in January - is also a worry. Clothing is one of the first things consumers cut back on when they are feeling the pinch."

"Overall, aside from the major supermarkets, few retailers will cheer these figures. With inflation still elevated, and the dire state of government finances suggesting further tax rises could be on the cards, UK consumers are unlikely to be splashing the cash in 2025."