UK retail rebounds as online sales post sharp surge
UK retail spending and volumes rose sharply in January, with online sales recording their biggest year-on-year increase in nearly five years. The figures add to signs of a more resilient consumer at the start of 2026.
Retail sales volumes rose 1.8% in January compared with December, according to the latest Office for National Statistics retail bulletin. Volumes over the three months from November 2025 to January 2026 also edged up 0.1% compared with the previous three months.
Parcelhero said the year-on-year comparison was stronger across the peak trading period: volumes from November to January were up 2.6% versus the same period a year earlier.
Online activity stood out in January's figures. Non-store retail sales volumes, a category largely made up of online shopping, rose 3.4% in January compared with December.
Online spending also rose. Online sales values increased 1.3% month on month in January and jumped 14.7% compared with January 2025. Parcelhero said this was the largest year-on-year rise since April 2021.
"Better still, volumes for November-January were also up 2.6% year-on-year (YOY), meaning Brits bought more items over the Christmas/Black Friday peak and New Year than they did a year ago," said David Jinks, head of consumer research at Parcelhero.
Share holding
Despite the month-on-month rise in online volumes and values, online's share of total retail spending barely changed. Online accounted for 28.2% of overall retail spend in January, down slightly from 28.3% in December, Parcelhero said.
Total spending across in-store and online sales rose 1.6% in January compared with December, according to analysis cited by Parcelhero.
Over the latest three-month period, online spending rose 1.8% compared with the previous three months to October 2025. It was also up 10.8% compared with November 2024 to January 2025, Parcelhero said.
The figures follow several years of mixed performance for retailers as households have faced higher living costs and pressure on discretionary budgets. The jump in online spending, in particular, suggests consumers were more willing to spend at the start of the year than many retailers had expected.
Parcelhero linked the year-on-year gain in online spending to improving sentiment, while noting that retail conditions can still change quickly as households react to economic policy signals and price expectations.
"All in all, January was a good month online and on the High Street. Could retail have its mojo back for 2026 after a lacklustre few years? Let's hope the Chancellor's Spring Statement, due 3 March, contains nothing to spook consumers," said Jinks.
Omnichannel focus
The data also underlines the need for retailers to manage demand across physical and digital channels at the same time. A steady online share of around 28% suggests consumers continue to split spending between web and store rather than shifting decisively in one direction.
Parcelhero said retailers with both store networks and online operations are more insulated from abrupt shifts in behaviour. It cited its "2030: Death of the High Street" report, which it said has been discussed in Parliament, and said the findings underline the value of an omnichannel model spanning eCommerce and bricks-and-mortar sites.
"Ultimately, however fickle or strong key retail periods of the year prove to be, it's those stores with a combined High Street and online offering that are most protected against unexpected events," said Jinks.