UK's retail sector witnesses fourth consecutive month of negative sales

Total like-for-like retail sales fell 0.8 percent in January across discretionary spend categories, according to new data from accountancy and business advisory firm BDO’s High Street Sales Tracker.

This marks the fourth successive negative sales performance since October 2023 after a poor performance for retail’s crucial ‘golden quarter’.

Commenting on the data revelations, Sophie Michael, head of retail and wholesale at BDO, said in a statement: “Retailers across discretionary spend categories would have been hoping that January discounting might provide a much-needed boost to sales, but unfortunately this wasn’t the case.”

BDO’s report showed that while online sales increased 3.2 percent, this was offset by a 4.2 percent drop for in-store sales, with shoppers choosing to stay at home as much of the country faced storm disruption and a period of very cold weather.

Looking at sector performance, despite the fashion and lifestyle categories seeing an increase in total like-for-like sales, it was another negative month for the homewares sector, with the category seeing sales fall by 8.4 percent. In-store homewares were particularly poor, with sales declining by 10.1 percent.

“As we approach the Spring Budget in March, retailers will be looking to the Chancellor for targeted support. We know measures such as a rethink on the so-called ‘tourist tax’ are already being considered which would be a welcome boost to the sector, but this alone may not go far enough in the current climate,” added Michael.