Retail sales rebound in January as Omicron eases

UK retail sales rebounded by 1.9% in January as the impact of Omicron and pandemic restrictions eased.

Department stores, garden centres and other non-food outlets saw particularly strong growth with a 3.4% rise, the Office for National Statistics (ONS) said.

However, food sales fell below their pre-pandemic level for the first time.

January's growth followed a sluggish December, when sales fell 4% as Omicron restrictions were imposed.

ONS director of economic statistics Darren Morgan said January's rebound was "the biggest monthly rise since the shops reopened last spring".

He added: "It was a good month for garden centres, department and household goods stores, with particularly strong trading for furniture and lighting.

"Food sales fell below their pre-pandemic level for the first time, though, as more people returned to eating out and there was also anecdotal evidence suggesting higher demand for takeaways and meal-subscription kits."

A rise in High Street footfall towards the end of the month meant that the proportion of online sales dropped to its lowest level since March 2020, the ONS said. An increase in road traffic helped push fuel sales up from December.

It came as ONS data this week confirmed the cost of living hit a fresh 30-year high last month as energy and food prices continued to soar and retailers reined in seasonal discounts.