Britain’s retail sales recovered in January as shoppers shrugged off rising inflation and the threat from the Omicron variant of coronavirus eased.
The volume of goods sold in stores and online rose 1.9 per cent compared with the same month a year earlier, according to the Office for National Statistics, reclaiming part of the 4 per cent decline seen in December when Covid-19 restrictions were tightened.
The rise in sales was the biggest monthly increase since the shops reopened last spring, with department stores, garden centres and other non-food stores recording particularly robust growth, of 3.4 per cent.
Helen Dickinson, chief executive of the British Retail Consortium, said despite inflation pressures and falling consumer confidence, retail sales held up well in January as retailers went to great lengths to keep up the Christmas momentum.
“Sales of non-food items, including clothing, furniture and household goods all grew by high double digits,” said Ms Dickinson.
“Meanwhile, food sales dropped — though this is compared to January 2021, when most of the country was in lockdown and households were unable to eat out.”
Britain's inflation rate rose to 5.5 per cent in January on the year, taking prices to a fresh 30-year high and pushing living costs up further for households already struggling with higher energy bills and interest rates.
Inflation was up from December's rate of 5.4 per cent, driven by higher clothing and footwear prices, according to the Office for National Statistics, with the Bank of England expecting inflation to hit 7.25 per cent in April — more than triple its 2 per cent target — when a 54 per cent surge in energy bills and higher taxes take effect.
However, despite the threat of rising inflation, and 76 per cent of consumers now saying they are feeling the effects of the cost-of-living squeeze, sales volumes were 3.6 per cent above pre-pandemic levels seen in February 2020.
“Consumers appeared to be shrugging off the mounting cost-of-living crisis and that trend still appears to be continuing for now, with a trip to the shops becoming more popular through February,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“According to other data from the ONS, in the week to the February 12 overall retail football in the UK increased by 2 per cent from the previous week and was 86 per cent of the level seen in 2019, the fifth consecutive week of increasing retail footfall.”
The figures add to a raft of data that are likely to convince the Bank of England that the UK economy is recovering strongly enough to cope with a third straight interest-rate increase in March.
They also provide some succour for the nation’s beleaguered retailers, who saw a dismal December after households brought forward their festive shopping in fear of further Covid restrictions.
The number of people shopping during Boxing Day sales in London’s West End plummeted last year, as many chose to avoid the city centre amid a surge in cases of the Omicron coronavirus variant in the UK.
Footfall around the shopping destinations of Oxford Street, Regent Street and Bond Street was almost half of pre-pandemic levels on Sunday, the first day after Christmas, when shoppers typically flood the capital on the hunt for bargains.
The upbeat January figures suggest that consumers are starting to look beyond the coronavirus pandemic and returning to a more typical behaviour pattern, said Stuart Cole, chief macroeconomist at stockbroking firm Equiti Capital.
“However, the key issue going forward will be whether this apparent bounce back in consumption will be able to withstand the forthcoming increase in taxation and energy bills set to hit in April, which together will take a significant chunk out of workers' pay packets,” he said.
The specs
A4 35 TFSI
Engine: 2.0-litre, four-cylinder
Transmission: seven-speed S-tronic automatic
Power: 150bhp
Torque: 270Nm
Price: Dh150,000 (estimate)
On sale: First Q 2020
A4 S4 TDI
Engine: 3.0-litre V6 turbo diesel
Transmission: eight-speed PDK automatic
Power: 350bhp
Torque: 700Nm
Price: Dh165,000 (estimate)
On sale: First Q 2020
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
All about the Sevens
Cape Town Sevens on Saturday and Sunday: Pools A – South Africa, Kenya, France, Russia; B – New Zealand, Australia, Spain, United States; C – England, Scotland, Argentina, Uganda; D – Fiji, Samoa, Canada, Wales
HSBC World Sevens Series standing after first leg in Dubai 1 South Africa; 2 New Zealand; 3 England; 4 Fiji; 5 Australia; 6 Samoa; 7 Kenya; 8 Scotland; 9 France; 10 Spain; 11 Argentina; 12 Canada; 13 Wales; 14 Uganda; 15 United States; 16 Russia
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Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
Abu Dhabi Sustainability Week
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
The Vile
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
Company profile
Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
Sleep Well Beast
The National
4AD
U19 WORLD CUP, WEST INDIES
UAE group fixtures (all in St Kitts)
Saturday 15 January: v Canada
Thursday 20 January: v England
Saturday 22 January: v Bangladesh
UAE squad
Alishan Sharafu (captain), Shival Bawa, Jash Giyanani, Sailles Jaishankar, Nilansh Keswani, Aayan Khan, Punya Mehra, Ali Naseer, Ronak Panoly, Dhruv Parashar, Vinayak Raghavan, Soorya Sathish, Aryansh Sharma, Adithya Shetty, Kai Smith
Biog
Mr Kandhari is legally authorised to conduct marriages in the gurdwara
He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada
Father of two sons, grandfather of six
Plays golf once a week
Enjoys trying new holiday destinations with his wife and family
Walks for an hour every morning
Completed a Bachelor of Commerce degree in Loyola College, Chennai, India
2019 is a milestone because he completes 50 years in business
COMPANY PROFILE
Company name: SimpliFi
Started: August 2021
Founder: Ali Sattar
Based: UAE
Industry: Finance, technology
Investors: 4DX, Rally Cap, Raed, Global Founders, Sukna and individuals
