Retail sales rebound offers hope UK can escape deep recession

Retail sales rebounded in January with volumes boosted 3.4%, following a difficult December.

The figures, which have beaten economist expectations, come after December retail sales dropped 3.2%.

Prices continued to climb, with the amount spent by shoppers up 3.9% as volumes edged up 3.4%.

The retail sales figures are the biggest rise since April 2021 when stores reopened following the third Covid lockdown, and offer hope the UK can quickly break out of recession.


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Accenture UK & Ireland retail industry lead Stuart Chalmers said: “Retailers will be pleased to see this boost at the start of the year, in a week that brought the unwelcome news that the UK has entered a technical recession.

“Sales rose in most subsectors, with food stores and supermarkets contributing most, but clothing retailers will be disappointed to see a drop in numbers.”

He added: “January’s retail performance will offer hope to a beleaguered sector after a challenging ‘golden quarter’.

“With inflation continuing to hold steady, retailers should be using data to better understand what customers want, and when they want it. This approach can help to inform their broader strategy, including in their supply chains, through to in-store experiences.”

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