UK BRC Like-for-like Retail Sales (January) +2.5% y/y Prior +3.1%)

Earlier re the UK:

• BoE’s Mann says UK inflation is less of a threat, prices coming close to 2% target

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British Retail Consortium (BRC) data for January 2025:Like for like sales +2.5% y/y

• prior +3.1%

Total sales +2.6% y/y, partly inflated by weak year-ago data and a December boost from Black Friday timing differences.

• 12 month average is 0.8%

BRC chief executive Helen Dickinson:

• January a solid month for retail
• stormy weather temporarily impacted demand

With retailers bracing for £7 billion in extra costs:

• due to higher social security contributions, a rising minimum wage, and a new packaging levy,

Dickinson warned.

• “Many businesses will have little choicee but to raise prices and cut investment in jobs and stores”

Barclays recorded a 1.9% increase in consumer spending, the strongest since March, despite a decline in consumer confidence to its lowest level since the bank began tracking it in April.

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BRC like-for-like sales is a metric reported by the British Retail Consortium to measure changes in retail sales, excluding the impact of new store openings or closures.

• It reflects sales performance only from stores that have been open for at least a year, providing a clearer view of underlying trends in consumer spending without distortions from changes in retail floorspace. This metric is widely used to assess how well retailers are performing in comparable, established locations, making it a reliable indicator of real growth or decline in sales.

This article was written by Eamonn Sheridan at www.forexlive.com.