Retail sales data for January disappoints

A bigger-than-expected drop in January retail sales underscored the business damage from a prolonged nationwide lockdown.

Official data on Friday showed retail sales volume tumbled by 8.2 per cent, and sales value by 7.8 per cent, in January as non-essential shops went back into coronavirus lockdowns.

All sectors saw a monthly decline in volume sales in January except for non-store retailers and food stores, who reported growth of 3.7 per cent and 1.4 per cent respectively when compared with December 2020.

The proportion of online retail increased to a record level in January 2021 reaching 35.2 per cent up from 29.6 per cent in December 2020 and was far higher than the 19.5 per cent in January 2020, reflecting the impact the pandemic has had on consumer behaviours.

Food stores also reported a record proportion of online sales this month of 12.2 per cent with anecdotal feedback from retailers suggesting a boost for click and collect food orders, the Office for National Statistics said.