Following a decline in December, official data from the UK show that shop sales volumes unexpectedly increased by 0.5% in January.
However, the Office for National Statistics (ONS) reported that sales volumes fell 5 point 1 percent from January of last year.
Since last year, prices have been sharply rising, primarily because of the skyrocketing cost of energy, which has put pressure on millions of households.
While inflation is beginning to slow down, at 10%, it is still very close to a 40-year high.
According to the ONS, January sales promotions helped online stores grow.
Due to the rising cost of living and high food prices, however, food store sales decreased as consumers made fewer purchases.
Retail sales volumes as a whole continue to be below pre-pandemic levels.
The ONS also noted that consumer spending cuts caused the decline in retail sales in December to be more severe than initially anticipated.
Darren Morgan, director of economic statistics at the ONS, stated that although retail sales in January slightly increased after a sharp decline in December, the overall trend continued to be one of decline.
Fuel sales increased as pump prices continued to decline, and Mr. Morgan noted that discounting helped increase sales for online merchants as well as jewelers, cosmetic shops, and carpet and furniture stores.
"However, clothing store sales fell back sharply after four consecutive months of growth," he continued.
Consumers reported choosing lower-priced goods as the impact of rising living expenses and food prices continued to sting, resulting in a decline in food store sales. ".
Retail analysts said January's figures showed consumers were eager to take advantage of sales after the holiday season.
Waiting for the sales you know are coming makes sense when your money isn't going as far as it once did, according to AJ Bell's Danni Hewson.
With the hope that their children or other family members would treat themselves to the things they really wanted at a price that looked much nicer, many families decided to cut back on their Christmas gift-giving. However, there will also be many people who chose to give cash instead. ".
Despite the increase in sales, Ms. Hewson cautioned that retailers will have "mixed emotions" about the figures because offering items at a discount does little to increase margins.
It was "hard to see," Lisa Hooker from PwC continued, how the retail sector could maintain its strong momentum once the seasonal discounts end.
Inflation is biting and incomes are finding it difficult to keep up, so December really seems to have been a last hurrah for consumers, she said.
"Retailers' ability to make it through the upcoming six months will determine how successful they are in the coming year.
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