UK retail sales rose in January 2026, with the latest data pointing to a post-Christmas rebound after a subdued festive period.
Total UK retail sales growth climbed 2.7% year-on-year for the four weeks to 31 January, according to the British Retail Consortium (BRC) and KPMG. This pace exceeded both the 12-month average and the rate seen in January 2025.
Retailers and market analysts say the shift reflects consumers delaying purchases during December and waiting for January discounts.
helen dickinson, chief executive at the BRC, characterised the performance as a recovery from “a drab December” and noted that sales momentum was broadly driven by seasonal offers and stronger in-store activity.
January retail sales data and consumer behaviour
Total retail sales rose 2.7% year-on-year in January 2026, outpacing the recent 12-month average growth of 2.3%. Food sales were a key contributor, increasing 3.8% compared with the same month a year earlier.
Non-food sales also rose, with a 1.7% year-on-year gain, above the long-run average of around 1.1%. In-store non-food sales grew by about 2.0%, indicating a partial shift back to physical retail, while online non-food sales recorded a modest 1.3% increase.
Market observers linked this retail sales uptick to consumer behaviour. Many shoppers postponed discretionary spending during the Christmas period and took advantage of New Year and January sale promotions.
Linda Ellett, UK Head of Consumer, Retail & Leisure at KPMG, said January promotions “enticed consumers to spend,” highlighting strong performance in categories such as personal electronics, furniture and children’s clothing and toys.
Background: December sales and economic context
The retail bounce in January followed a weak performance in December 2025, when total sales growth slowed significantly.
BRC data for the festive period showed retail sales rose just 1.2% on the year, well below the 12-month average and slower than December 2024.
Non-food sales were particularly weak over that period. Analysts described December as a challenging trading environment, with higher household costs and cautious consumer spending weighing on demand.
In broader economic terms, UK consumers have faced persistent cost pressures from rising prices and inflation.
Earlier BRC figures tracking price inflation showed shop price inflation jumped in January, with increases seen in food and non-food categories, partly linked to higher business energy costs and national insurance contributions.
Implications for the retail sector
The improvement in UK retail sales figures for January suggests some resilience in consumer demand at the start of 2026.
However, industry experts caution that sustained sales growth will depend on broader economic conditions, including consumer confidence, inflation and cost pressures on households and businesses.
Retailers and analysts note that promotional strategies were effective in prompting purchases but also underline the ongoing challenge of growing sales volumes amid cautious spending.
Overall, the January results provide a snapshot of retail activity after a sluggish end to 2025, with discounting and delayed purchases driving notable year-on-year growth.
Continued monitoring of consumer trends and economic indicators will be essential for understanding how UK retail sales evolve through 2026.
