UK retail sales plunged in January during lockdown

The Office for National Statistics (ONS) said retail sales volumes dived 8.2% last month against December 2020 after non-essential retailers shut their doors to customers.

It was significantly worse than analyst expectations, with a consensus of economists predicting a 2.5% decline for the month.

Jonathan Athow, deputy national statistician for economic statistics at the ONS, said: “The latest national lockdown led to a sharp monthly fall in January’s retail sales, with April 2020 the only month on record to see a bigger slump.

“Department and clothing store sales were particularly affected this month.

“However, the decrease seen this time was not as large as that of the first lockdown, as some stores have adapted to the current circumstances, with services such as click-and-collect helping to cushion the fall.”

Maddy Alexander-Grout, founder of the small business national discount scheme, MyVIPCard, said: “January was one of the bleakest months yet for UK retailers, who were hit by the double whammy of post-Christmas belt-tightening and the latest national lockdowns.

“I have spoken to hundreds of local retailers so far this year and the harsh reality is that many are not just close to shutting up shop but are also mentally exhausted."