Retail sales in the UK saw a boost in January, driven by increased spending on health and beauty products, as well as a surge in purchases influenced by social media trends. The rise in consumer activity provided some relief for retailers following a sluggish festive period.
Social Media Influence on Shopping Habits
The latest figures indicate a 1.9% year-on-year increase in card spending, marking the strongest growth since March last year. A major contributor to this was a 10.7% rise in discretionary spending on health and beauty products, the highest rate of growth in over three years.
Social media continues to play a key role in shaping consumer choices, particularly among younger shoppers. One in five consumers reported making a health or beauty-related purchase after seeing content online, a figure that rose to 40% among Gen Z shoppers. Wellness trends, including food supplements, vitamins, and high-protein diets, also translated into increased sales.
Entertainment and Tech Sales on the Rise
The entertainment sector also performed well, with cinema and event spending up by 8.1% compared to the previous year. Popular family-friendly films contributed to a 15.1% rise in cinema revenue.
Sales of technology and household items rebounded, with a 2.5% increase in January, reversing a 2.8% decline from the previous year. Grocery sales also grew by 2.8%, although this was lower than the 6.1% increase recorded in the previous period.
Economic Uncertainty Looms Over Retail
Despite the positive start to the year, concerns remain over the wider economic climate. Retailers warn that uncertainty surrounding interest rates, inflation, and business costs could impact future sales.
April is expected to bring higher employment taxes and an increase in the minimum wage, adding financial pressure to businesses. Industry leaders have cautioned that these rising costs could lead to job losses or higher prices for consumers.
While retail sales increased 2.6% year-on-year, experts believe this momentum may not be sustained. Economic forecasts predict interest rates may fall to 3.5% by the end of the year, which could support consumer spending. However, inflation is expected to rise to 3.7% by autumn, potentially dampening purchasing power.
Retailers remain hopeful that a strong investment climate and steady consumer demand will help stabilise the sector, but challenges persist as the UK navigates ongoing economic pressures.
Stay tuned to London Pulse News for further updates on the UK retail sector and how ongoing economic changes may impact consumer spending and business strategies.
