Drapers - Retail sales rise in January but inflationary pressures ahead


Non-food gross sales, together with clothes and footwear, had been up 2.5% 12 months on 12 months in January 2025, the newest BRC-KPMG retail gross sales monitor exhibits, towards a decline of two.8% in January 2024.

This was above the three-month common progress of 0.2% and above the 12-month common decline of 1.1%, the report, printed at this time (11 February), exhibits.

The report, which covers the 5 weeks from 29 December 2024 to 1 February 2025, additionally exhibits thatUK whole retail gross sales, together with meals, elevated by 2.6% 12 months on 12 months in January, towards a progress of 1.2% in January 2024,

Helen Dickinson, CEO of the BRC, mentioned: “Whether or not this robust efficiency can maintain out for the approaching months is but to be seen. Inflationary pressures are rising, compounded by £7bn of latest prices dealing with retailers, together with greater employer Nationwide Insurance coverage contributions, greater Nationwide Dwelling Wage, and a brand new packaging levy.”

Many companies might be left with little selection however to extend costs, and reduce funding in jobs and shops, she mentioned. Authorities can mitigate this by making certain its proposed enterprise charges reforms don’t end in any store paying extra in enterprise charges, the BRC is arguing.

Each instore and on-line non-food gross sales had been up within the interval. In retailer gross sales had been up by 2.6% 12 months on 12 months, towards a decline of two% in January 2024. This was above the three month common decline of 0.7% and above the 12-month common decline of 1.7%.

On-line non-food gross sales elevated by 2.2% 12 months on 12 months in January, towards a decline of 4.2% in January 2024. This was above the three month common progress of 1.8% and above the 12-month common progress of 0.1%.

The replace doesn’t present a breakdown of particular person non-food classes equivalent to clothes and footwear, however states that solely the toys and child gear class remained in decline.

The figures additionally present that the net penetration fee, the proportion of non-food gadgets purchased on-line, decreased to 35.7% in January from 35.8% in January 2024. This was beneath the 12-month common of 36.7%.

Linda Ellett, UK head of shopper, retail & leisure, KPMG, mentioned: “2025 acquired off to a welcome begin for retailers with a lot wanted gross sales progress in January. However considered over a three-month interval that included Christmas and Black Friday, non-food gross sales have flatlined. General, the golden quarter didn’t shine.”

Boardroom concentrate on prices and competitiveness was sharpening, she mentioned. “Pricing changes, product launches, retailer closures, job losses, and elevated automation and synthetic intelligence are all set to reshape the retail panorama in 2025.”