ONS: Retail Sales See Fastest Growth in 20 Months

The ONS has published retail sales data for January 2026.

Overview

The quantity of goods bought (volume) in retail sales is estimated to have risen by 0.1% in the three months to January 2026, compared with the three months to October 2025. The rise was because of better automotive fuel sales over the three months to January 2026, and a good start to the year for non-food stores, which was only partly offset by falls in supermarkets.

Retail sales volumes are estimated to have risen by 1.8% in January 2026, following a rise of 0.4% in December 2025 (unrevised from the previous publication) and a fall of 0.4% in November 2025 (revised down from a 0.1% fall in our previous publication). Growth in January 2026 was partly because of artwork and antiques sales, alongside continued strong sales from online jewellers.

Retail sales in January 

• Sales volumes rose over both the month and the three months to January 2026

Sales volumes rose by 0.1% in the three months to January 2026, compared with the three months to October 2025. Sales volumes were 2.6% higher than in the three months to January 2025.

Sales volumes rose by 1.8% over the month during January 2026, which was the largest monthly rise since May 2024. This followed a rise of 0.4% in December 2025. Sales volumes rose by 4.5% over the year to January 2026.

Compared with their pre-coronavirus (COVID-19) pandemic level in February 2020, January 2026 volumes were flat, at 0.0%.

Retail sector volumes

• Automotive fuel and non-food retailers’ sales rose over the three months to January 2026

Sales volumes rose 0.1% over the three months to January 2026. This was partly because of automotive fuel sales, which fell in October 2025, but rebounded in November. Non-food stores (the total of department, clothing, household, and other non-food stores) also rose over the three months to January. This was partly because of strong sales volumes in commercial art galleries during January 2026. Computer and telecoms retailers also saw a sustained strong performance since September 2025. Household goods stores also grew, which retailers attributed to good January seasonal sales for furniture, and there was a strong November 2025 period for hardware stores. This was partly offset by falls in supermarkets and department stores.

Sales volumes rose 1.8% over the month to January 2026. Other non-food stores had a good month as auctions of items such as artwork and antiques drove volumes. Mail order retailers, which are predominantly online, experienced a boost from retailers selling sports supplements, as well as continued strong sales volumes by online jewellers. Comments from jewellers reported that demand had hit unprecedented levels.

Online retail values

• Online sales rose in January 2026 despite falls across non-food stores

The amount spent online, known as "online spending values", rose by 1.8% when comparing the three months to January 2026 with the three months to October 2025. It rose by 10.8% when comparing the same period with the three months to January 2025.

Within the monthly series, online sales values rose by 1.3% over the month to January 2026, and by 14.7% when comparing January 2026 with January 2025. This was the largest year-on-year rise since April 2021, as online sales fell on both the month and the year in January 2025.

The Met Office Weather and Climate summaries explain that the UK had above average rainfall in January 2026, but below average rainfall in January 2025. According to our UK retail footfall dataset, footfall was down in January 2026.

Total spend (the sum of in-store and online sales) rose by 1.6% over the month. As a result, the proportion of sales made online fell from 28.3% in December 2025 to 28.2% in January 2026.

Commentary

BRC:

Responding to the latest ONS Retail Sales Index figures, which showed sales up 6.5% by value, and up 5.5% by volume, Ian Bendelow, Retail Sales Lead at the British Retail Consortium, said:

“Large retailers recovered ground after a weaker December, with growth of 3.1% on last year, meanwhile smaller retailers continued their winning streak with sales growth of 2.9%. The improved sales growth reflected stronger consumer sentiment in January, as well as the release of pent up demand, as many consumers held off on Christmas spending only to splurge on the January sales. The sectors which did particularly well included clothing, computing, furniture, beauty and books.”

Omnisend:

Marty Bauer, senior e-commerce expert at Omnisend, comments: “While January is traditionally associated with a tightening of purse strings, retailers were successfully able to attract sales by slashing prices in the January sales. Consumers have entered 2026 with cautious optimism, and the industry will be hopeful that momentum continues. 

“The early part of the year is now driven less by impulse purchases and more by intentional buying. Discount-led events, loyalty offers, and personalised promotions will have played a crucial role in converting browsers into buyers, particularly online, where price comparison is effortless.

“Our recent research shows that 44% of British consumers will wait for sales and promotions before they shop, and more than a fifth (21%) will only shop during major discount periods, such as the January sales.

“We’re also seeing consumers gravitate towards practical categories in January, whether that’s fitness-related purchases, home essentials or self-improvement items. Retailers that anticipated these behavioural shifts and aligned messaging accordingly are likely to have outperformed.

“Make no mistake that these figures will be welcomed by retailers, following a difficult year in 2025, but it doesn’t signal carefree spending. Shoppers remain highly price-conscious, and brands that continue to demonstrate clear value and relevance will be best placed as 2026 unfolds.”

Source : ONS, BRC

Image : tupungato / iStock / 2157254329

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