Retail sales in Great Britain rise as shoppers home in on discounts
Retail sales in Great Britain picked up slightly in January, driven by cheaper fuel prices for motorists and shoppers snapping up bargains at jewellers and carpet and furniture stores in the new year sales.
The Office for National Statistics (ONS) said the general trend pointed downwards despite the 0.5% increase in retail sales last month, as people tightened their belts during the cost of living crisis. As a result, last month’s overall sales volumes remained 1.4% below pre-pandemic levels recorded in February 2020.
Sales volumes for December, which showed a surprise slide in purchases, were also revised lower from a fall of 1% to a fall of 1.2%. Many consumers reined in their spending over the festive season.
Stubbornly high food and drink prices prompted consumers to cut back on their grocery purchases, and food store sales volumes fell by 0.5% last month, after a fall of 0.7% in December.
The ONS said shoppers continued to cut back on food purchases amid rampant increases in grocery prices and the squeeze on household budgets.
The figures came only days after the ONS released its monthly inflation figures for January, which showed the third consecutive month of falls in the UK’s headline inflation rate, although it remained at 10.1% – well above the Bank of England’s 2% target.
The annual rate of food inflation stands at 16.7%, while the cost of eating at restaurants and hotel stays were almost 11% higher.
Shoppers cut back on clothes purchases at the start of the year, the ONS found, despite the traditional post-Christmas reductions, and clothing store sales declined by 2.9% in January, after four months of positive growth.
However, motorists filled up their cars more often with petrol and diesel in January, as the cost of
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