Retail sales increased by +11.9% YoY in January, against a decline of -1.3% in January 2021 (+7.5% Yo2Y), according to the latest BRC-KPMG Retail Sales Monitor.
UK retail sales increased +8.1% YoY on a LFL basis from January 2021, when they had increased +7.1%.
Online non-food sales decreased by -24.2% YoY, compared with growth of +83.0% in January 2021 (+31.8% Yo2Y).
The online penetration rate of non-food products decreased to 41.5%, from 66.2% in January 2021 (it was 31.2% in 2020).
BRC chief executive Helen Dickinson OBE says: “It is encouraging to see such strong sales in January, even once inflation has been accounted for. Food sales were more muted than in previous months, as people went back to eating out more often. Consumers prioritised home purchases, boosting the sale of household appliances, electronics and homeware. In what may be signs of a return to pre-pandemic trends, furniture was the stand-out performer in January, after transport delays in the Christmas period began to ease."
After jewellery and watches, furniture was the best-performing category in January.
“Retailers and consumers face challenges in the coming months," Helen continues. "Retailers face competition from other spending opportunities as the public flood back to restaurants, cafes and live events. Furthermore, rising inflation, driven by higher costs of production, higher energy and transport prices, as well as other looming price hikes this spring will mean consumers will have to tighten their purse strings.”
