New figures from the latest BRC-KPMG retail sales monitor have shown that sales in January rose by 11.9% year-on-year.
Customers returned to the high street in January and like-for-like sales increased by 8.1% on January 2021, when many stores were closed due to Covid restrictions.
Helen Dickinson, chief executive of the British Retail Consortium, commented: “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.”
Sales of non-food items during the three months to January also increased by 11.1% vs 2021. In-store sales rose by more than two thirds, due to shops being open this year. For similar reasons, online sales of non-food items dropped by 24.2% in January.
Paul Martin, UK head of retail at KPMG, said: “With Covid restrictions now eased, and people heading back to workplaces, retailers will be hoping consumer confidence remains robust to help offset the rising cost challenges that they are likely to experience for a while.
“We could see a challenging few months ahead if wider macroeconomic conditions start to squeeze household incomes to the point that they start cutting back on retail spending.
“Retailers are facing their own inflationary pressures and will need to take tough decisions on whether and how to pass on the increase in costs they have been sitting on for some time to consumers facing their own financial challenges.”
