The latest figures from the Office for National Statistics (ONS) follow a fall of 0.6% in December. The 1.7% rise was driven by food shopping and online spending, as people stayed at home last month.
More broadly, sales volumes fell by 0.6% in the three months to January 2025, compared with the three months to October 2024, but rose by 1.4%, compared with the three months to January 2024.
Food stores’ sales volumes rose by 5.6% on the prior month in January 2025, the largest rise since March 2020, at the start of the Covid lockdown.
Supermarkets, specialist food stores like butchers and bakers, and alcohol and tobacco stores all rose over the month. Retailers suggested that the increase was because of more people eating at home in January.
Non-food stores including department, clothing, household and other non-food stores fell 1.3% over the month. Clothing retailers and household goods stores suggested the fall was because of reduced consumer confidence.
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‘Few retailers will cheer these figures’
Charlie Huggins, manager of the quality shares portfolio at Wealth Club, said: “The large increase in food sales is clearly a positive for supermarkets, but it may be a worrying sign for other parts of the economy. More people eating at home is especially bad news for restaurants, pubs and bars. These sectors are in dire need of footfall, with their costs set to rise significantly in April following the Autumn Budget.
“The decline in clothing sales – the worst performing category in January – is also a worry. Clothing is one of the first things consumers cut back on when they are feeling the pinch.
“Overall, aside from the major supermarkets, few retailers will cheer these figures. With inflation still elevated, and the dire state of Government finances suggesting further tax rises could be on the cards, UK consumers are unlikely to be splashing the cash in 2025.”
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “People have been eating in more instead of dining out, shunning spending in restaurants. Bargain hunting is still in fashion, with consumers sniffing out cheaper prices in markets, stalls and from online sellers, with non-store retailers seeing volumes rise 2.4%.
“After an encouraging spurt of activity in December, tougher times have returned for clothing, homeware and department stores, with volumes falling for non-food stores by 1.3% on the month. Splashing out on a new outfit or furnishings has [fallen] down shopping lists amid concerns about the economic outlook.”
