UK consumer confidence remained at its gloomiest in five-and-a-half years this month.
Shop prices in January were slightly up on a year ago despite heavy post-Christmas discounting.
Consumers have placed Brexit as their top concern for the year ahead as it is expected to dent retail turnover this year.
The retail industry has scrapped off 70,000 jobs in the fourth quarter of last year compared to the same period in 2017.
A tough Christmas saw the UK online retail sector record the lowest-ever monthly sales growth in December.
A new report has found that online retail spend from commuters contributes £22.8 billion per year to the economy.
New ONS figures have painted a slightly rosier picture of UK retail sales for December when compared to recent gloomy reports.
Inflation has fallen to its lowest level in two years, meeting expectations but coming within a whisker of the BoE's target.
Visa's UK Consumer Spending Index, compiled by IHS Markit revealed that overall expenditure continued to decline in December.
Two-thirds of Brits of are confident on finances for the year ahead despite concerns about food prices and household bills in the run-up to Brexit.