Furniture retail sales decreased slightly during January on last month but were up against an annual comparison.
According to the latest data from the Office for National Statistics, furniture and lighting retail sales fell 2.6% to £1.45bn from £1.49bn in December. Compared to the previous year, sales were up 25% from £1.16bn.
Floorcovering retail sales increased month-on-month, up by 59.6% to £332.7m from £243m. Compared to the same time last year, sales rose by 36.9% from £208.4m.
Retail sales volumes (quantity bought) are estimated to have risen by 1.7% in January 2025. As for the value (amount spent), this was down 24% month-on-month to £45bn.
Non-food stores – the total of department, clothing, household and other non-food stores – fell 1.3% over the month. Clothing retailers and household goods stores suggested the fall was because of reduced consumer confidence.
The amount spent online, known as “online spending values”, fell by 1.7% over the month to January 2025. It fell by 4.8% when comparing the three months to January 2025 with the three months to October 2024. However, sales values rose by 0.8% when comparing January 2025 with January 2024. Total spend – the sum of in-store and online sales – rose by 2.6% over the month. As a result, the proportion of sales made online fell from 26.9% in December 2024 to 25.7% in January.
Commenting on the retail sales figures for January, ONS Senior Statistician Hannah Finselbach said: “Retail sales rebounded strongly in January following four months of consecutive falls. This was driven by a robust month for food sales, which saw their largest rise since March 2020. Supermarkets, alcohol and tobacco stores as well as specialist shops like butchers and bakers all reported strong trading.
“However, clothing shops and household goods stores had less of a successful month with retailers reporting lacklustre sales due to weak consumer confidence. Looking at the broader picture, retail sales have decreased across the three-month period and are below pre-pandemic levels.”
Responding to the latest ONS Retail Sales Index figures, Kris Hamer, Director of Insight at the British Retail Consortium, said: “2025 got off to a good start with retail sales managing to weather the stormy January. Retailers put on extensive promotions, and customers who were looking to upgrade their furniture and household electrical appliances made the most of the many bargains that there were to be had. But, with consumer expectations for the economy falling almost 40pts since July 2024 and an unsteady job market, the next few months are hard to predict.
“This boost to sales barely touches the sides of the £7bn in new costs from the Budget and packaging levy facing the industry this year. The industry is already paying more than its fair share of tax and with retailers already doing all they can to absorb existing costs, retailers will be left with little choice but to increase prices or reduce investment in jobs and shops, or both. To mitigate this, Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”
