January retail benefits from highest growth of in-store sales in six months

Total UK retail sales increased 2.7% year on year in January, against a growth of 2.6% in January 2025, according to the BRC-KPMG sales monitor. This was above the average 12-month growth of 2.3%.

Food sales saw the largest rise, growing 3.8% in January compared to a 2.6% growth in the same month last year. 

Non-food sales rose 1.7% year on year in January compared to a growth of 2.5% in the same month in 2025, above the 12-month average growth of 1.1%.

In-store food sales had its highest growth over six months. It increased 2% year on year compared with a rise of 2.6% in January 2025. 

Online non-food sales rose 1.3% annually in January against an increase of 2.2% in the same period last year.

BRC chief executive Helen Dickinson said: “A drab December gave way to a brighter January as retail sales picked up pace. 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.

“While retailers welcomed the increase in spending, many challenges remain in 2026. Consumer confidence, while improving, remains weak; costs of energy and packaging are rising, and the new Employment Rights Act could limit the ability of retailers to offer more flexible jobs. 

“The government must focus on getting the last of these right – ensuring protections for workers without damaging the availability of the jobs themselves. This is essential as unemployment continues to climb.”

KPMG UK head of consumer, retail and leisure Linda Ellett said: “The year started well for the retail sector, with welcome sales growth. January sales enticed consumers to spend, with personal electronics, furniture, and children’s clothes and toys, all among the best performing categories.  

“New year health and personal care goals led to related spending, including on wellness-focused food and drink items.

“Many retailers will be pleased that their promotional strategies worked in January, but they remain acutely aware of the challenge of consistently growing sales volumes when consumers continue to be cautious about, and savvy with, their spending.”