Retail growth rose to 1.7% in January, after sales were flat in December at 0.2%, and online retail spend growth (excluding groceries) reached 5.7%, with its share of overall retail spending reaching its highest level since January 2022, at 59.2%.
That’s according to the latest data from the Barclays Consumer Spend report, which suggests UK consumers held out to shop the January sales from the comfort of home, following a subdued Golden Quarter for many retailers.
Sales of clothing for the period increased by 3.1%, while pharmacy, health and beauty sales rose 8%, and general retailers and marketplaces saw 4.8% growth – up from 1.1%, 4.3%, and 2.6% respectively in December.
Research on behalf of Barclays, carried out between 23-27 January by Opinium Research, which surveyed a representative sample of 2,000 UK consumers by age, gender, region, and income group, found that 50% plan to focus more on their wellbeing in 2026.
Additionally, amid the growing popularity of weight-loss drugs, 17% of consumers have spotted more GLP-1-friendly options on supermarket shelves, rising to 28% for those aged 18-34.
Barclays sees nearly 40% of the nation’s credit and debit card transactions, providing a unique insight into UK consumer spending, which increased 0.8% in January. However, that was considerably less than the latest CPIH inflation rate of 3.6%.
Essential spend fell 1.1%, marking six months of decline, but discretionary spending grew 1.6% from 25 December 2025 – 22 January 2026, versus the same period last year, again led by the strong performance of online retail over the January sales period.
Karen Johnson, Head of Retail at Barclays, said: “Both big and small screen entertainment thrived last month, helped by the buzz around awards season favourites, and people spending more time at home.
“This also resulted in growth for online retail, as shoppers seemingly held out for the January sales.”
Consumer confidence remained “stable” in January, with most measures on par with December, when they improved marginally. Confidence in household finances remained at 66%, up two percentage points from November (64%), while confidence in consumers’ ability to live within their means also stayed flat at 71%.
Jack Meaning, Chief UK Economist at Barclays, said: “Improving consumer confidence is absolutely key to the UK’s economic outlook in 2026. With that in mind, the stabilisation in this month’s survey is an encouraging step in the right direction.
“With inflation set to fall quickly in the coming months, interest rates on course to ease and some early signs of resilience in wider activity, the scene is set for confidence to pick up, supporting growth in spending as the year goes on.”