Home Business News Retail sales bounce back which ‘will put an end to the retail recession’

Retail sales bounce back which ‘will put an end to the retail recession’

by Amy Johnson LLB Finance Reporter
16th Feb 24 11:13 am

Following a record poor performance in December retail sales bounced back in January which saw their largest single monthly gain in almost three years.

According to the Office for National Statistics (ONS)retail and online retailers sales volumes climber 3.4% in January compared to a drop of 3.3% in the last month of 2023.

“After a very weak December, retail sales rebounded in January with the largest monthly rise since April 2021,” said Heather Bovill, deputy director for surveys and economic indicators at the ONS.

“This means that overall sales have now recovered to pre-December levels, although if we look at the broader picture, they are still below where they were pre-pandemic.”

She added, “Sales increased across nearly all retail sectors, and it was a particularly strong month for supermarkets.

“Household goods stores, sports shops and department store retailers were amongst those reporting robust trading due to January sales promotions.

“A fall in prices at the pump also meant a solid month for fuel sales.

“Clothing shops were the only area not to see growth this month.”

“Retail sales volumes in January will put an end to the retail recession and perhaps even to the wider economy recession in Q1,” said Joe Maher, assistant economist at economic research business Capital Economics.

“The strong pick up in sales suggests the worst is now behind the retail sector and falling inflation and rising wages in 2024 will provide a strong platform for recovery.”

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