Retail sales slow as high cost of living enters third year
The proportion of non-food items bought online decreased to 35.0% in January from 35.4% in January 2023
UK total retail sales increased by 1.2% year on year for the four weeks ended 27 January 2023, compared with a growth of 4.2% in January 2023, according to data from the British Retail Consortium (BRC).
This was above the three-month average growth of 1.9% and below the 12-month average growth of 3.4%.
The BRC said the decline in growth was caused by easing inflation and weak consumer demand as the cost of living crisis rolls into its third year.
Food sales increased 6.3% year on year over the three months to January, against a growth of 8.0% in January 2023.
Non-food sales decreased 1.8% year on year over the three-months to January, against a growth of 2.9% in January 2023, this is steeper than the 12-month average decline of 0.5%.
Over the three months to January, in-store non-food sales decreased 1.5% year on year, against a growth of 7.2% in January 2023.
The proportion of non-food items bought online decreased to 35.0% in January from 35.4% in January 2023.
Helen Dickinson OBE, chief executive of the BRC, said: While the January sales helped to boost spending in the first two weeks, this did not sustain throughout the month. Larger purchases, such as furniture, household appliances, and electricals, remained weak as the higher cost of living continued into its third year.
“The milder temperatures meant clothing sales performed poorly, particularly winter clothing and footwear. It was better news for health and beauty products, which continued to sell extremely well.
She added: “With the Spring Budget in sight, and a general election looming, government cannot afford to ignore the needs of retailers and their customers. Employing three million people and supporting families and communities in every corner of the country, retail is the ‘everywhere economy’.
“By addressing the cumulative burdens, from business rates’ rises, to ill-conceived new recycling proposals to border control costs, the next government can unlock retail investment and boost local and national economic growth.”
