UK retail sales rose by 0.1 per cent in January and were up by 1.6 per cent compared to January 2017, although the increase was lower than recent forecasts.
Figures from the Office for National Statistics (ONS) show that shoppers are still feeling squeezed by high inflation, and the stagnant wage growth meant that the growth rate to for the three months to the end of January, which strips out some month-to-month volatility, was actually the lowest since April 2017.
Food sales were particularly badly hit, with sales in January falling by 0.9 per cent in volume terms compared with the same month a year earlier, which represented the biggest fall since last October.
However, according to the ONS, sales of sporting equipment, including gym wear, were resilient, probably because of New Year resolutions to get fit, but this was offset by the drop across food.
Commenting on the figures, a spokesman for consultancy Retail Economics said that they “confirm a terrible start to the year for retailers” and represent, in fact, the worst January since 2013.
The bad start to the year has impacted on stores across the UK, with supermarkets such as Tesco, Sainsbury’s and Morrisons all announcing plans to cut thousands of jobs and strip out layers of middle management.
However, some commentators were more bullish, with one claiming there “could be some light at the end of the tunnel”. He believes that inflation may well have peaked, which could see an end to falling real wages, which should boost the finances of cash-strapped households.
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