RETAIL sales have beat forecasts to rise by 1.8% in January in figures that will be “welcomed by retailers following a difficult year in 2025”.
Retail volumes are estimated to have risen by 1.8% in January 2026, following a rise of 0.4% in December 2025 and a fall of 0.4% in November 2025, new data released today shows.
Growth in January 2026 was partly because of artwork and antiques sales, alongside continued strong sales from online jewellers.
The quantity of goods bought (volume) in retail sales is estimated to have risen by 0.1% in the three months to January 2026, compared with the three months to October 2025.
The rise was because of better automotive fuel sales over the three months to January 2026, and a good start to the year for non-food stores, which was only partly offset by falls in supermarkets.
This comes as earlier this week it was revealed that inflation had eased in the UK to 3% from 3.4% – but unemployment rose to 5.2%.
Welcomed by retailers
Grant Fitzner, Chief Economist at the Office for National Statistics, 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.”
Marty Bauer, senior ecommerce expert at Omnisend, said January sales drove the rise.
He added: “While January is traditionally associated with a tightening of purse strings, retailers were successfully able to attract sales by slashing prices in the January sales. Consumers have entered 2026 with cautious optimism and the industry will be hopeful that momentum continues.
“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.
“Our recent research shows that 44% of British consumers will wait for sales and promotions before they shop and more than a fifth (21%) will only shop during major discount periods, such as the January sales.
“We’re also seeing consumers gravitate towards practical categories in January, whether that’s fitness-related purchases, home essentials or self-improvement items. Retailers that anticipated these behavioural shifts and aligned messaging accordingly are likely to have outperformed.
“Make no mistake that these figures will be welcomed by retailers, following a difficult year in 2025, but it doesn’t signal carefree spending. Shoppers remain highly price-conscious, and brands that continue to demonstrate clear value and relevance will be best placed as 2026 unfolds.”
January signals a reset in spending
Nicholas Found, Head of Commercial Insights at Retail Economics, said January can be a reset for retailers.
He continued: “January signals a reset in spending, where wellness, jewellery and practical home upgrades outperformed as consumers focus on self-improvement and long-term value. Although overall volume growth still leaves much to be desired, it tells us demand has become more intentional.
“Inflation easing to 3% in January has revived the prospect of a spring Bank of England cut, with the potential to unlock confidence, credit availability and big-ticket demand if this trend continues. But we’re not there yet. 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. Growth is being redistributed, setting the tone for another year defined by market-share battles rather than broad-based recovery. At the same time, retailers are grappling with mounting employment and operating costs. Businesses are weighing up hiring against automation as margins are under pressure.”
Photo by Tim Mossholder on Unsplash.
