UK retail sales strengthen in January - CBI

22nd Jan 2026 09:18

(Sharecast News) - The British retail sector strengthened in January, an industry survey showed on Thursday, despite households remaining cautious about spending.

According to the latest distributive trades survey from the Confederation of British Industry, retail sales volumes fell in January, with a balance of -17. However, that was a notable improvement on December's -44, and was well ahead of forecasts for -35. It was also the highest reading since April 2025.

A balance is the weighted difference between the percentage of firms reporting an increase and those reporting a decrease.

However, retailers remained cautious looking forward. Respondents pointed to household spending continuing to be weighed down by subdued consumer confidence and warned sales would like decline at a quicker pace in February.

The expectations balance was -30, although that was up on December's -57.

In contrast, online sales - which performed strongly in the run-up to Christmas - fell at the sharpest pace since June 2024, with the balance sliding to -41 from -12 in December. However, demand was expected to pick up next month, with a balance of 12.

Martin Sartorius, lead economist at the CBI, said: "Retailers continue to report that household spending is being weighed down by subdued confidence and cautious behaviour.

"Weak demand conditions were also reported in the wholesale sector, where sales volumes fell sharply year-on-year.

"Against a backdrop of weak demand, firms need to see the government taking decisive action to lower the cost of doing business."

The survey of 202 respondents, 74 of which were retailers and 106 wholesalers, was carried out between 22 December and 13 January.