British retail opened 2026 with signs of resilience and a slightly higher-than-expected growth rate, supported by the return of consumers to physical stores and the delayed effect of the January sales. According to data released by the British Retail Consortium, overall retail sales in the UK grew by 2,7% year-on-year in January, exceeding both the +2,6% recorded in the same month of 2025 and the average of the last twelve months (+2,3%).
The overall figure was once again driven by the sector Food, which recorded an increase of 3,8% year on year, accelerating compared to January 2025 (+2,8%) and perfectly in line with the annual average. This result confirms the defensive role of food in a context of prudent consumption, as well as the sector's ability to intercept new trends, particularly those related to health and well-being.
More moderate, but still significant, is the dynamics of the Non-Food, which recorded a growth of1,7 %, higher than the average of the last twelve months (+1,1%), while remaining below the pace of last January (+2,5%). Within the sector, a significant figure emerges for omnichannel strategies: sales Non-Food in-store have increased by 2,0 %, marking the best performance in the last six months, while theonline Non-Food stopped at +1,3%, below the annual average. The online penetration rate in the Non-Food sector rose to 37,2 %, up from 35,7% a year ago, but slightly lower than the twelve-month average (37,4%), confirming a partial rebalancing in favor of the physical channel.
Secondo Helen Dickinson, CEO of the British Retail Consortium, "a dull December gave way to a brighter January, with many consumers postponing Christmas shopping to take advantage of the sales. The strongest growth was seen in physical stores, a sign that bargain hunting wasn't just digital."
An analysis also shared by Linda Ellett, UK Head of Consumer, Retail & Leisure by KPMG, who emphasizes how the start of the year benefited categories such as consumer electronics, furniture, and children's clothing, as well as products related to health and personal care. "The promotions worked," he observes, "but retailers are well aware of how challenging it is to maintain consistent volume growth with increasingly discerning and selective consumers."
On the front Food & Drink, Sarah BradburyCEO IGDMore, highlights a still fragile climate of confidence, affected by fears of further price increases. The numerous product innovations launched in January, especially in the health-oriented segment, have stimulated the testing of new products, but the outlook for 2026 points to persistent food price inflation, which is set to keep consumers vigilant about their spending choices.
Overall, January's data paints a picture of a resilient British retail sector, capable of responding with promotional leverage and targeted assortments, but still caught in a climate of cautious demand, where growth remains more in value than volume.
