January discounts helped sustain retailers' sales after a disappointing end to last year.
Our data showed that the average spend in January was higher than in December, particularly in the first week of the month which saw purchases up 12% compared to the average day last year. Millennials largely drove this trend, purchasing big ticket items such as furniture or electrical gadgets.
With the Bank of England reporting a slow uptick in real wages, we may see sustained growth in sales continue into next month and beyond. However, retailers should be cautious of consumers reducing spending in light of the interest rate rises predicted this year.
Growth last month was at its slowest since April 2017 according to the Office for National Statistics, with sales rising just 0.1 per cent, far below expectations of a 0.6 per cent increase.