Retail Sales Take a Bite Out of January
According to BDO’s High Street Sales Tracker, shoppers were a little under‑eager in January. The like‑for‑like figures slipped -0.8% across all the “discretionary” buckets—think fashion, homewares, and lifestyle goods.
Four‑In‑A‑Row Decline
It’s not just a one‑off slump. This drop is the fourth straight month of weaker sales since October 2023, smack‑in the middle of what’s dubbed retail’s “Golden Quarter” (the season leading up to Christmas).
“Retailers were hoping that the January markdown buzz would lift the needle,” said Sophie Michael, Head of Retail and Wholesale at BDO. “Turns out the boost was a non‑starter.”
Online vs. In‑Store: The Dark‑Sky Divide
- Online sales saw a modest +3.2% rise.
- In‑store sales took a sharper hit at -4.2%.
The contrast? While the internet still attracts customers, many shoppers stayed indoors because a storm rattled the country, turning blue skies into a cold, dreary maze.
Sector Snapshots
- Fashion & Lifestyle – Positive vibes: kept growing.
- Homewares – Not so great: total sales fell by -8.4%, with in‑store numbers down an extra -10.1%.
What’s Next for Store Owners?
Sophie warns that early discounts might just be the tip of the iceberg. Retailers may have to keep the deals coming to drum up footfall and clear unwanted stock.
“January was supposed to be the comeback year for shops after a tough pre‑Christmas period,” she says. “But the lack of a significant bounce‑back is a big red flag.”
With April’s business rates adjustment, rising National Living Wage and a pile of operational costs, running a high street shop is getting pricier. Tight profit margins will feel the squeeze even more.
We’ll be watching the Spring Budget in March for any lifeline. There’s talk of tweaking the “tourist tax” and other small fixes that could lift spirits—yet, in the current environment, a single measure won’t cut it.
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