UK shop sales showed an unexpected increase in January, official figures show.
Retail sales volumes rose by 0.5% last month, following a fall of 1.2% in December, the Office for National Statistics (ONS) said.
Compared with a year ago, however, sales volumes were down 5.1% and the general trend remains one of decline.
Sales volumes fell by 0.9% in the three months to January 2023 when compared with the previous three months, and by 5.7% versus the same period a year earlier.
Set against the pre-pandemic level in February 2020, sales volumes last month were 1.4% lower.
Fuel sales rose in January as prices continued to fall at the pumps, while discounting helped boost sales for online retailers as well as jewellers, cosmetic stores and carpet and furnishing shops, said Darren Morgan, director of economic statistics at the ONS.
“However, after four months of consecutive growth, clothing store sales fell back sharply,” Morgan added.
“Food store sales dipped again with consumers reporting they were selecting lower-priced goods as the increased cost of living and higher food prices continue to bite.”
Lisa Hooker from PwC, quoted by BBC News, warned that the retail sector may find it hard to maintain sales volumes after seasonal discounting comes to an end.
The festive period “really looks to have been a last hurrah for consumers as inflation bites and incomes struggle to keep up,” Hooker said.
“For retailers, surviving the next six months will be critical to their success in the year ahead.”
