Latest figures from the Office for National Statistics (ONS) estimated that the 3.4% rise in January was the largest monthly increase since April 2021.
The rise also returned sales volumes to November 2023 levels following December’s record fall, which was the largest monthly drop since January 2021, when Covid restrictions affected sales.
During the month, sales volumes in all sub-sectors increased, except clothing stores, which dropped 1.4%.
Nevertheless, consumers spent more for less in January 2024, as the 3.9% monthly rise in sales values (the amount spent) exceeded the 3.4% rise in sales volumes.
Looking over a longer period, sales volumes rose 0.7% between January 2023 and January 2024 but were still 1.3% below their pre-pandemic level in February 2020.
Erin Brookes, European retail and consumer Lead at Alvarez & Marsal, said: “After Christmas failed to deliver for retailers, discounting in January has helped tempt customers into stores and online, with early signs that consumer sentiment is bouncing back as inflation eases. However, retailers still need to take steps to continue this momentum behind sales for the new season.
“Recent sales performances means that retailers will be looking to streamline their operating costs, but they should be pragmatic about where to spend. In particular, maintaining a consistent level of expenditure on marketing across all channels will be important to draw customers in, especially for clothing retailers launching their spring and summer ranges in the coming weeks.”
