Heavy post-Christmas discounting helped retail sales rise robustly in January, according to a new survey from the British Retail Consortium (BRC).

Retail sales volumes rose 2.6 per cent year-on-year in January, well above the 12-month average of 0.8 per cent and up from an increase of 1.2 per cent this time last year.

The survey suggested that price cuts managed to entice consumers to the high street, as in-store sales rose at the fastest pace in nearly two years.

“While the bouts of stormy weather put a temporary dampener on demand, sales growth held up well throughout the rest of the month,” Helen Dickinson, chief executive of the BRC said.

“Consumers headed to the shops to refresh their homes for the year ahead, taking advantage of big discounts on furniture, bedding and other home accessories,” she continued.

Non-food sales increased 2.5 per cent annually, having fallen 2.8 per cent in January 2024.

Linda Ellett, UK head of consumer, retail & leisure at KPMG, said the strong start to the year was “much needed” for retailers given the range of headwinds facing the sector.

“The trading environment remains tough for retailers, with consumer demand still subdued and household essential bills still high,” Ellett said.

Food sales rose at a much slower pace than last year, rising 2.8 per cent compared to a 6.1 per cent increase a year ago. However, monthly sales were roughly in line with the 12-month average.

The data will raise hopes that demand among UK households might recover early in 2025, having weakened significantly at the end of last year.

Multiple surveys showed that consumer confidence has nosedived, driven by fears around the government’s tax plans and increasing global uncertainty.

According to the Office for National Statistics, retail sales volumes dropped 0.8 per cent in the final quarter of last year compared to the quarter before.