20th February 2026
Retail sales at the start of 2026 offered a brief but telling snapshot of how households and businesses are coping with the wider economic climate.
According to the latest ONS figures, sales volumes rose 1.8% in January, the strongest monthly increase since mid‑2024, and were 4.5% higher than a year earlier. This rebound contrasts with the sluggish end to 2025, when sales were flat or falling in several categories, particularly supermarkets and department stores.
The January uplift was driven by non‑food retailers — including furniture, hardware, art, and jewellery — and by a sharp rise in online spending, helped along by poor weather that kept people away from high streets.
For households, this pattern suggests a cautious return of discretionary spending after months of restraint, though the continued weakness in supermarket sales hints at ongoing pressure on everyday budgets.
For businesses, especially those in non‑food sectors, the data offers a rare moment of optimism: consumers are willing to spend, but they are being selective, favouring value, convenience, and online channels.
In short, the retail figures show an economy that is stabilising but still fragile and is a reminder that while headline numbers may improve, the lived reality for many families and small firms remains tight.
Read the full ONS report HERE