16 July 2024, 21:01
By Furniture News Feb 10, 2023

Retail sales growth slowed in January, says BRC-KPMG

UK total retail sales increased by +4.2% in January, against an increase of +11.9% in January 2022, according to the latest data from BRC-KPMG. LFL retail sales increased by +3.9%. 

Online non-food sales decreased by -3.6% in January, against a decline of -24.2% in January 2022. The proportion of non-food items bought online (penetration rate) decreased to 41.8%, from 44.6% in January 2022. 

Growth in the furniture category ranked 8th of 13 product categories, slightly up from 9th in December (but significantly down YoY, when it ranked 2nd). Furniture was ranked 4th online (up from 5th in January 2022). 

BRC chief executive Helen Dickinson OBE says: “As Christmas cheer subsided, retailers felt the January blues as sales growth slowed. Many retailers discounted heavily to entice consumer spend, and while there were bargains to be had in the January sales, retailers continue to be hit by lower margins and falling volumes. Own-brand ranges remain popular across food and non-food products, and big-ticket items are seeing customers trade down."

Paul Martin, UK head of retail, KPMG, says: “With inflation running at around 10%, sales growth for January nearly halved in comparison to December, to just over +4% - sending a clear signal that consumers have started the year with a tight rein on spending as they face another period of rising costs. 

"The decline in sales taking place online continued this month, but is starting to level out, and far from the 24% drop in sales that online retailers witnessed a year ago in January."

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