"On the surface these results might look like cause for cautious optimism: high street sales up above the rate of inflation, and total sales also ticking up. But looking closer, it's clear that after a very disappointing Christmas, when sales fell online and in-store, the trading environment for retailers has hardly improved in the new year. We saw very high levels of discounting immediately after Christmas and the first week of January that has almost entirely driven the growth in sales recorded this month."
"The fashion sector recorded the strongest in-store performance across core discretionary categories, with sales up +7.6% compared to January 2025, and non-store sales also recorded positive growth, up +4.8% on the same month last year. This set of results also marks the ninth time in the last twelve months that total sales grew below the rate of inflation, a reflection of long-term difficult trading conditions for the sector."
Total retail sales in discretionary categories rose 1.7% year‑on‑year in January but remained below the rate of inflation, reflecting lower sales volumes versus January 2025. In-store sales fell -0.5% in December, while January high street sales grew 4.7% driven primarily by heavy post‑Christmas and New Year discounting. Discounting supported early‑month sales, but combined in-store and online sales declined in the final two weeks of January. Fashion performed strongest, with in‑store sales up 7.6% and non‑store sales up 4.8%. Total sales have grown below inflation in nine of the past twelve months. Retailers carried high stock and used promotions to clear inventory and generate cashflow.
Read at London Business News | Londonlovesbusiness.com
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