UK clothing store sales sank in January as consumer confidence continued to plummet, according to the latest sales figures from the Office of National Statistics.

Non-food stores including UK clothing retailers experienced a decline but this was offset by food sales in January resulting in overall retail sales volume growth of 1.7%.

Concerns are growing, however, as news of inflation rising once again, hit headlines this week.

With clothing falling into the non-essentials category, it is the one that has been hit hardest as consumer confidence wanes.

Just Style has rounded up what industry onlookers had to say about the latest retail sales figures.

Industry reaction to January UK retail figures

Charlie Huggins, manager of the quality shares portfolio at Wealth Club: “Retail sales volumes came in much better than expected in January, but this was largely due to a significant recovery in food sales. Non-food stores saw sales decline by 1.3%, with clothing sales especially weak – hardly a sign that consumers are feeling flush.

“The decline in clothing sales – the worst performing category in January – is a worry. Clothing is one of the first things consumers cut back on when they are feeling the pinch.

“Overall, aside from the major supermarkets, few retailers will cheer these figures. With inflation still elevated, and the dire state of government finances suggesting further tax rises could be on the cards, UK consumers are unlikely to be splashing the cash in 2025.”

Alice Cowley, retail strategy managing director at Accenture: “Consumers have kept a tight grip on their purse strings post-Christmas. While Grocery inflation eased for the first time in six months, driving 1.7% growth, it was offset by a decline in household goods and textile clothing and footwear.

“This past three-month period has fallen short of expectations for many, as shoppers increasingly prioritised essentials only in non-food categories and turned to own label food products, weakening margins. This, coupled with increasingly bad weather resulted in a subdued January, not the splash retailers will have wished for.

“Retailers’ focus in the months ahead will be on offsetting rising cost pressures from employer national insurance contributions, an increased national living wage, and a new packaging levy without pricing out consumers. To stay competitive, retailers should embrace innovation, streamlining supply chains, investing in technology, and delivering standout customer experiences with the personalisation shoppers expect.”

Silvia Rindone, EY UK&I Retail Lead comments: “While macro trends such as growing consumer income in real terms and lower interest rates are positive news, the benefits are not being felt evenly across the retail landscape. Overall growth in the retail sector remains sluggish, masking a mix of both strong and poor performers within every retail sub-sector. Performance is highly variable and largely dependent on how well retailers have optimised their customer offerings — both digitally and physically — over recent years. Those who have not invested in their propositions are now struggling to find the space to invest further in increasingly challenging conditions.

“As retailers navigate an uncertain trading environment, it is essential they build a broader proposition that goes beyond selling products. Designing service offerings that effectively solve customer problems is one example of how they can foster loyalty and drive sales. Additionally, investing in strong brands that drive trust will be crucial for retailers looking to differentiate themselves in a competitive market.

“While January has brought a positive start to the year, the retail sector must remain agile and focused on customer-centric strategies to thrive amid the anticipated economic challenges ahead.”

David Morrison, senior market analyst, Trade Nation: “There was a decline in non-food store sales volumes, which fell by 1.3% over the month. There was also a fall in the amount spent online, by 1.7%. This comes as no surprise following the inflation figures of 3% that were seen last week. It further highlights the lack of spending power consumers currently have, as they act more cautiously with buying non-essential goods.”

Greg Zakowicz, senior ecommerce expert at Omnisend: “Our data shows that UK retailers have sent out 14% more marketing emails in the first seven weeks of 2025 compared to the same period last year.

“This could reflect the fact that consumers are feeling the pinch and are proving harder to convert than in the past.

“That’s understandable given that inflation is once again on the rise, interest rates are far higher than what they were for well over a decade and many retailers, due to the impending National Insurance hikes, are having to increase prices.

“Consumer confidence, multiple surveys have shown recently, is weak and the economy is generating little, if any, growth.

“A stagnant economy coupled with fiscal pressures from the Budget are also potentially creating fears around job certainty, which again makes people less likely to spend, which hurts retailers, both high street and online.”

Nicholas Found, head of commercial content at Retail Economics said: “Trading conditions remained challenging across much of the market. January’s sales ultimately failed to recover losses from a weak golden quarter. Shoppers took advantage of widespread January discounts, reinforcing the shift towards value-driven behaviour – a trend becoming deeply ingrained as the economy navigates a long and uneven path toward stable inflation and growth.

“Retailers now face tough decisions on how to mitigate rising tax burdens from April, whether through squeezed margins, increased automation, or passing on higher operating costs. This combination will inevitably impact investment in the workforce and put pressure on pricing strategies.”

Kris Hamer, director of insight at the British Retail Consortium said: “With consumer expectations for the economy falling almost 40pts since July 2024 and an unsteady job market, the next few months are hard to predict.

“This boost to sales barely touches the sides of the £7bn ($8.86bn) in new costs from the Budget and packaging levy facing the industry this year. The industry is already paying more than its fair share of tax and with retailers already doing all they can to absorb existing costs, retailers will be left with little choice but to increase prices or reduce investment in jobs and shops, or both. To mitigate this, Government must ensure that its proposed business rates reform does not result in any shop paying higher rates than they already do.”