New Year's sport supplement buying adds to January retail sales surge
#retail sales #sports supplements #gold prices #UK economy #New Year resolutions #unemployment #wage growth #online shopping
📌 Key Takeaways
- UK retail sales surged 1.8% in January, exceeding expectations
- Sports supplements and online jewelry sales drove the increase
- Analysts warn the surge may be temporary due to weak underlying economic conditions
- Unemployment reached near five-year high with slowing wage growth
📖 Full Retelling
UK retail sales unexpectedly surged by 1.8% in January, the strongest monthly growth since May 2024, driven by increased demand for sports supplements likely motivated by New Year's resolutions and strong online jewelry sales following a spike in gold prices, according to figures from the Office for National Statistics. The increase exceeded economists' expectations of just 0.2% growth and was bolstered by several factors. Sales volumes in non-store retailing, primarily online, grew by 3.4% over the month, with analysts attributing part of this increase to adverse weather conditions that kept shoppers away from physical stores. Danni Hewson from AJ Bell noted that 'New year health goals also sent many of us who overindulged during the festive period on the hunt for sports supplements as we pushed our bodies back into exercise mode.' The 'other non-food stores' category experienced the most significant percentage increase, rising 5.3%, partly due to auctions of artwork and antiques, which analysts linked to soaring gold prices. However, analysts cautioned that the monthly rise might be temporary. ONS figures revealed that sales volumes grew by only 0.1% in the three months to January compared to the previous three-month period. Paul Dales from Capital Economics observed that while the sports supplement surge 'made the economy look more healthy,' the underlying economic conditions remain challenging with 'employment growth weak and wage growth slowing.' This sentiment was supported by separate ONS data showing unemployment reached a near five-year high at the end of last year, with wage growth decelerating to 4.2%. Hewson emphasized that consumers remain under pressure, making careful decisions about spending, suggesting the January retail boost may not be sustainable.
🏷️ Themes
Retail Sales, Economic Indicators, Consumer Behavior
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Original Source
New Year's sport supplement buying adds to January retail sales surge 45 minutes ago Share Save Shakira Abdi Business reporter Share Save An increase in demand for sports supplements likely driven by New Year's resolutions helped lift retail sales by more than expected to 1.8% in January. Continuing strong sales from online jewellers after a recent spike in gold prices was a key driver in the increase, as were artwork and antique auctions. The 1.8% increase in January was the strongest monthly growth since May 2024, figures from the Office for National Statistics show, and much higher than the 0.2% predicted by some economists. But analysts said the uptick could be temporary, as sales nearly flatlined in the three months to January, and a weak jobs market potentially added to consumer caution. Sales volumes in non-store retailing, which is mostly online, grew by 3.4% over the month. Danni Hewson, head of financial analysis at AJ Bell, said the weather played its part here, pushing people away from the high street and onto their laptops. She said: "New year health goals also sent many of us who overindulged during the festive period on the hunt for sports supplements as we pushed our bodies back into exercise mode." News headlines about record gold and silver prices also helped lift sales for online jewellers in particular, she added. Sales volumes in the "other non-food stores" category saw the biggest increase in percentage terms, rising 5.3% over the month. The ONS said this was partly driven by auctions of artwork and antiques, which analysts said could also be linked to soaring gold prices. But Hewson cautioned that the monthly rise should be taken with "a big pinch of salt", citing ONS figures showing sales volumes grew by just 0.1% in the three months to January, compared with the three months to October 2025. "It's clear consumers are still under pressure and still making complicated decisions about where to spend every penny," she said. Separate ONS data rel...
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