January was robust month for food sales

Grocery retail enjoyed something of a boom in January, with sales rebounding strongly at the start of 2025.

According to the latest figures from the ONS, it was a robust month for food sales, which saw their largest rise since March 2020.

Supermarkets, alcohol and tobacco stores, as well as specialist shops like butchers and bakers, all reported strong trading for the first month of the year, a welcome reprieve for what has been a tough period of trading.

However, as ONS Senior Statistician Hannah Finselbach said, there is still much to be cautious about.

“Clothing shops and household goods stores had less of a successful month, with retailers reporting lacklustre sales due to weak consumer confidence,” said Hannah.

“Looking at the broader picture, retail sales have decreased across the three-month period and are below pre-pandemic levels,” she added.

Looking at the figures, sales volumes rose by 1.7% during January, following a 0.6% fall in December. Monthly index levels in January were their highest since August 2024.

However, volumes were down by 1.3% compared with their pre-pandemic level in February 2020.

More broadly, there was a 0.6% fall across the three months to January 2025, when compared with the three months to October 2024. This is because of low November and December sales in 2024.

Food stores sales volumes rose by 5.6% on the month – the largest rise since March 2020, putting index levels at their highest since June 2023. This follows four consecutive falls on the month, ending in December 2024 when index levels were their lowest since April 2013.

Supermarkets, butchers and bakers, and alcohol and tobacco stores all rose over the month, with retailers suggesting the increase was because of more people eating at home in January.

Meanwhile, non-food stores – the total of 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.

2025 got off to a good start for retailers, as they managed to weather a stormy January, said the British Retail Consortium.

“Retailers put on extensive promotions and customers who were looking to upgrade their furniture and households electrical appliances made the most of the many bargains that there were to be had,” said Kris Hamer, Director of Insight at the BRC.

“This boost to sales barely touches the sides of the £7bn in new costs from the Budget and packaging levy facing the industry this year.

“The industry is already paying more than its fair share of tax and with retailers already doing all they can to absorb existing costs, retailers will be left with little choice but to increase prices or reduce investment in jobs and shops, or both,” added Kris.

“To mitigate this, government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”