Retailers see January sales boost after weak festive season
By Benjamin Chiou
Date: Tuesday 10 Feb 2026
(Sharecast News) - Retail sales across the UK picked up strongly in January, as New Year promotions spurred consumer spending following two months of subdued growth.
According to the British Retail Consortium-KPMG monthly UK retail sales monitor released on Tuesday, sales rose 2.7% year-on-year over the four weeks to 31 January.
That's up from the meagre 1.4% increase seen in November, as pre-Budget jitters and a weak Black Friday limited spend, and a 1.2% rise in December on the back of strong prior-year comparatives and people holding out for January sales.
It was also comfortably above the 12-month average growth rate of 2.3%.
According to the BRC, food sales were up 3.8% over last January, following a 3.1% year-on-year increase in December, while non-food sales rose 1.7% following the previous month's 0.3% decline.
"A drab December gave way to a brighter January as retail sales picked up pace," said BRC chief executive Helen Dickinson.
"Many shoppers had held off Christmas spending and waited for the January sales, with the start of the new year showing the strongest growth. And bargain hunting was not limited to online, with in-store sales showing the highest growth in over six months."
However, Dickinson warned of "many challenges" to come in 2026, with consumer confidence still weak and the cost of energy and packaging on the rise. Meanwhile, she cited the new Employment Rights Act - which includes the end of zero-hours contracts - as limiting the ability of retailers to offer "more flexible jobs".
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