According to the British Retail Consortium (BRC), UK retail sales in January were “solid”, with 2.6% year-on-year growth and 1.2% increase in January 2024.

According to the BRC, this was above the 3-month average growth of 1.1% and above the 12-month average growth of 0.8%.

Offering kitchen and bathroom specialists good news, non-food sales increased by 2.5% year-on-year in January, against a decline of 2.8% in January 2024.

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The BRC stated this was above the 3-month average growth of 0.2% and above the 12-month average decline of 1.1%.

While the online penetration rate (of non-food items bought online) remained stable at 35.7% in January from 35.8% in January 2024.

This was below the 12-month average of 36.7%,  the BRC said.

Helen Dickinson OBE. chief executive of the British Retail Consortium,  said: “January sales kicked off a solid month for retail with stores delivering their strongest growth in almost two years, albeit on a weak comparable.

“Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories.

“With growth across nearly all categories, only toys and baby equipment remained in decline.

“While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month.

“This was also helped by the earlier start of the reporting period, adding a few more post-Christmas shopping days into the mix.”

However she warned it may not be an indicator of 2025, adding: “Whether this strong performance can hold out for the coming months is yet to be seen.

“Inflationary pressures are rising, compounded by £7bn of new costs facing retailers, including higher employer national insurance contributions, higher National Living Wage, and a new packaging levy.

“Many businesses will be left with little choice but to increase prices, and cut investment in jobs and stores.

“Government can mitigate this by ensuring its proposed business rates reforms do not result in any shop paying more in business rates.”

Taking a wider view of retail sales, UK head of consumer, retail & leisure, KPMG Linda Ellett commented: “2025 got off to a welcome start for retailers with much needed sales growth in January.

“But viewed over a three-month period that included Christmas and Black Friday, non-food sales have flatlined. Overall, the golden quarter failed to shine.

“The trading environment remains tough for retailers, with consumer demand still subdued and household essential bills still high.

“Business costs are also coming under pressure, with rising employment costs only increasing that in the coming months.

“Boardroom focus on costs and competitiveness is sharpening.

“Pricing adjustments, product launches, store closures, job losses, and increased automation and AI are all set to reshape the retail landscape in 2025.”