Retail sales above pre-pandemic levels

UK retail sales volumes increased by 1.9 per cent in January after a decline of four per cent in the previous month, according to the latest ONS retail figures.

Sales volumes were 3.6 per cent above their pre-pandemic February 2020 levels.

Non-food stores sales volumes jumped by 3.4 per cent in January 2022, with home improvement sales volumes picking up at household goods and garden centres.

But non-food sales volumes were 1.1 per cent below their February 2020 levels.

Food store sales volumes in January 2022 fell below pre-coronavirus levels for the first time and were 0.8 per cent below where they were in February 2020.

The proportion of retail sales online fell to 25.3 per cent in January 2022, its lowest proportion since March 2020 - 22.7 per cent – according to the ONS research. This continues a general downward trend since its speak in February – when it had a 36.5 per cent share of the market.

“Despite falling consumer confidence, retail sales held up well in January as retailers went to great lengths to keep up the Christmas momentum,” said Helen Dickinson, chief executive, British Retail Consortium. “Sales of non-food items, including clothing, furniture and household goods all grew by high double digits. Meanwhile, food sales dropped – though this is compared to January 2021, when most of the country was in lockdown and households were unable to eat out.”

The chief exec added: “Falling Covid cases and the slow return to offices offer further hope for town and city centres that were hardest hit by the pandemic. Yet, rising inflation means households may be preparing for future falls in disposable income, including from April’s National Insurance and energy price cap rises. Retailers face similar challenges, with increases in transport and energy costs, global commodity prices and domestic wages. While retailers are going to great lengths to mitigate or absorb these cost increases, it is inevitable that prices will rise further in the future.”

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